Rules for using the SBA Economic Injury Disaster Loan

The SBA Economic Injury Disaster Loan is a working capital loan. This means that the funds can only be used for the day to day, normal expenses incurred in your business. There are some restrictions on its use that could cause the SBA to demand the repayment of the funds immediately. In order to prevent that outcome, we wanted to provide you with some guidance on what is considered “normal operating expenses.” 

Normal Operating Expenses 

  • Rent/Mortgage 
  • Utilities 
  • Telephone 
  • Office Supplies 
  • Insurance 
  • Loan/credit card payments 
  • Website 
  • Advertising 
  • Merchant/Bank fees 
  • Bookkeeping/Accounting 
  • Payroll 
  • Inventory 

Not Approved Uses 

  • Dividends and bonuses 
  • Purchase of Equipment 
  • Expansion 
  • Refinancing of Debt – Credit cards, lines of credit, etc. 
  • Pay down of other Federal loans 
  • Repairs of physical damages 
  • Relocation 

This information was provided by Your Wright Resource.

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