EIDL

The intention of the loan is to cover regular operating expenses, so that the revenue loss incurred by Covid-19 is not affecting the business ability to function. Regular bills as in pre-Covid days are fine: fuel, insurance, tollways, truck & trailer payments(without accelerating the payoff schedule), warehouse rent, parking spot rent, business phone bills, load-board subscriptions. I guess here that PMs and also IRP, HVUT, normal business credit card payments (without paying them as lump sum, or accelerating the pay off schedule) would be all right too.
You can't pay off loans, debts, buy new trucks with it. If borrowed more that $25K you can't sell your equipment without SBA explicit consent either.
That's theory but how someone wants to utilize it depends on how daring that person is.

For instance, someone can think that for a one truck and trailer owner operator, it would take about one year to use up EIDL funds towards operating capital (e.g. 100K loan). I guess, after that time, he could start paying it off with a 3.75% / 30 year schedule while having $100K at his disposal (provided, of course, that his revenue during that time was enough to allow for that) and then he could pay off higher APR loans or add more equipment.
I am still not sure, if there is not any problem with that scenario either.

 

If you ask enough people you'll get the answer you want to hear. This is universal to any question you can think of.

If you ask the government the answer is probably no.

If you take money from the government expect them to come back for it years later when you least expect it.

Forgiveness is often easier to get than permission. Your mileage may vary.

 

This is just weird. People get their PPP loans forgiven in millions. But someone will go after you if you borrow 20K. Really?
People were shut down for about three months. They might have taken other loans in the meantime or used credit cards. So, they should be able to pay in a lump sum. Some people received the loans already, others are still waiting.
I took a loan for 20K. Since things are getting back to normal, it doesn't change the fact I lost business.

 

I don't think they will go after small businesses. And they can't punish people when their businesses will pick up some time later. Nobody knows the future. So, if their business does pick up, of course, they will try to get rid of all loans as soon as possible. I have quite a few loans. I started my own authority this year. I wasn't able to pay off as quickly as possible because of the shutdown.