How to use your EIDL loan? | EIDL Overview & FAQs -

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How to use your EIDL loan? | EIDL Overview & FAQs

June 22, 2020

Need more clarifications about SBA’s Economic Injury Disaster Loan? Let’s go over it together! In this video, FAS’ co-owner, Cristy Fontanilla, discusses EIDL facts and answer some common FAQs about this SBA loan.

2:08 What is EIDL?

3:11 Eligible Expenses

4:07 Loan Agreement (Interest Rate)

5:19 Amortization Calculation Demo

9:26 Loan Agreement (Collateral)

10:37 Loan Agreement (Requirements Relative to Collateral)

11:06 Loan Agreement (Use of Loan Proceeds)

12:23 Loan Agreement (Requirement for Use of Loan Proceeds and Receipts) (Answer questions “Can I use EIDL for relocation?” “Can I purchase equipment overseas?”)

14:05 Loan Agreement (Compensation From Other Sources)

16:16 Loan Agreement (Hazard Insurance)

16:33 Loan Agreement (Books and Records)

18:13 Recommendation: Keep EIDL proceeds on a separate bank account

18:57 Loan Agreement (Limits on Distribution of Assets) (Answer questions “Can I take draws/distribution/bonuses to pay myself/shareholder/partners?”)

20:05 Loan Agreement (Certifications)

20:47 Loan Agreement (Civil and Criminal Penalties) (Answer question “What happens if I misused the EIDL funds?)

21:24 Eligible Expenses (recap)

22:13 Ineligible Expenses (detailed)

26:25 Ineligible Expenses (Summarized)