How to spend the SBA EIDL?

[Solo Soul]

What is the name of your state?VA

Hello everybody,
I am a gig apps driver. I drive for Uber, Lyft, UberEats, Amazon Flex, DoorDash, GrubHub. I receive 1099s from them.

Based on my gross of 2019, SBA is giving me a loan of $120,000 at 3.75% for 30 years. I am a layman, the points in the agreement went over my head. My question is simple. How can I use this money without getting in trouble? Can I buy a bigger car and expand my business? If I buy a Suburban, I can make more money.
Sorry for posting under tax. There is no section for loans here.
Thank you for your contribution in advance!

 

[PayrollHRGuy]

Read your loan agreement. There should be a list of what it can't be used for. The EIDL at least used to not allow...

• Dividends and bonuses
• Disbursements to owners (draws and distributions), except when directly related to performance of services
• Repayment of stockholder/principal loans
• Expansion of facilities or acquisition of fixed assets (e.g. purchasing equipment such as a new camera)
• Repair or replacement of physical damages
• Refinancing long term debt (e.g. paying off previous large credit card debt)
• Paying down federal loans (from the SBA or other federal agencies)
• Relocation

 

[Zigner]

Read your loan agreement.

THIS.

There really is no way we can know what YOUR loan does or does not allow.

 

[davew9128]

THIS.

There really is no way we can know what YOUR loan does or does not allow.

Actually we can. EIDL loans all had very specific language terms.

That being said, if the OP has difficulty understanding them then I would suggest finding a high school student who can read it slowly to them.

 

[Zigner]

Actually we can. EIDL loans all had very specific language terms.

Fair enough - we may "know", but we can't explain it. Contract review is beyond the scope of this forum.

That being said, if the OP has difficulty understanding them then I would suggest finding a high school student who can read it slowly to them.

 

[LdiJ]

Was there confirmation here that this was an EIDL loan rather than a regular SBA loan? I realize that these days we tend to assume that, but I don't think there is enough evidence presented here to rule out a regular loan.

 

[PayrollHRGuy]

As usual, we can only go by what the OP tells us. And the OP subject is "How to spend the SBA EIDL?"

 

[LdiJ]

As usual, we can only go by what the OP tells us. And the OP subject is "How to spend the SBA EIDL?"

I missed the title until just now.