Want my blog posts delivered to your inbox? Click here to subscribe

IMPORTANT NOTE: If you receive both the PPP Loan and SBA EIDL, you cannot use them for the same purpose.

The Proceeds from the SBA EIDL can only be used for very specific things. Using the loan proceeds for ineligible reasons can possibly lead to fraud charges, so be very careful what you spend the money on.

Eligible expenses include:

  • Fixed debts (rent, etc.) 
  • Payroll 
  • Accounts payable 
  • Some bills that could have been paid had the disaster not occurred.

INELIGIBLE Expenses Include:

  • Dividends and bonuses 
  • Disbursements to owners, unless for performance of services  
  • Repayment of stockholder/principal loans (with exceptions) 
  • Expansion of facilities or acquisition of fixed assets 
  • Repair or replacement of physical damages 
  • Refinancing long-term debt
  • Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company
  • Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations  
  • Relocation (however, you can request written consent to relocate)

Questions? Concerns? Call me on (732) 673-0510.

Want my blog posts delivered to your inbox? Click here to subscribe

Click here to request a consultation or ask me a question.

Please reach out to me without hesitation with any tax, business or accounting question, and to schedule a consultation.

Tax Laws are complex.

It is very easy to make mistakes that can incur penalties.

Do you have a Tax, Accounting or Business Question?

Call Me Immediately. (732) 673-0510.

Is your CPA or Attorney

ignoring your Phone Calls and Emails?

Call Me Immediately. (732) 673-0510.

Remember,

“If We Aren’t Working For You, Then You Aren’t Working At Your Best”

Chris Whalen, CPA
(732) 673-0510
81 Oak Hill Road
Red Bank, NJ 07701
www.chriswhalencpa.com

cw-cpa-logoweb


#SBAgov #Lockdown #SmallBusinessSaturday #smallbusinessowner #Covid2019 #CoronavirusLockdown #CoronavirusPandemic #COVIDー19 #StimulusChecks #Covid19 #Coronavirus #smallbusinessowners #incometax #irs #businessmarketing #businessowner #yearend #jerseyshore #cpa #taxplanning #Accounting #TedTalk 

Print Friendly, PDF & Email