If you qualify for another SBA disaster loan due to a different declared disaster in your area, the new loan must be used for the purposes listed in your loan closing documents, which may include working capital or physical damage repairs. It cannot be used to refinance or payoff existing SBA disaster loans from previous disaster events, including ;· If you have previously submitted a Form 4506-T for an SBA loan or grant, you are still required to submit a new version for your COVID EIDL loan or loan increase. Form 4506-T is only valid for 120 days. If the form in your file is nearing expiration, your loan officer may request a new ;· The SBA’s Economic Injury Disaster Loan (EIDL) Program provides funding in the form of loans with low interest rates to small businesses that are experiencing temporary financial losses due to a disaster. Thanks to the CARES Act, it’s now easier for small businesses to qualify for the further break this down, the SBA states that the loans can be used for fixed debts, payroll and expenses, accounts payable, and other bills that can’t be paid because of the disaster’s impact. Unfortunately, there is no definitive list provided by the SBA explicitly stating all the things that EIDL’s can be used for, so it’s best to err on the side of can use an EIDL loan to pay for the following expenses incurred between January 31, 2020, and December 31, 2020: • Fixed debts (, long-term debts that your business owes), including mortgage (principal and interest) on a business property, business auto loans, and existing non-SBA loans. (If you have an existing SBA loan,COVID-19 Economic Injury Disaster Loan - SBASBA Loans: How to Achieve Disaster Loan ForgivenessSBA disaster loans explained | disaster loans explained | ;· That does not appear to be an acceptable use of EIDL based on the definition we discussed earlier: “ Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic , In addition, if relocation is an ineligible use for an existing business, it’s doubtful that starting a brand new business would be considered acceptable ;· SBA economic injury disaster loan (EIDL) EIDLs are essentially working capital loans for small for-profit and nonprofit businesses that have suffered a loss in revenue due to a natural disaster. They’re meant to help small businesses stay up and running while the disaster area recovers. Small agricultural co-ops are also eligible for this loan.

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