$10,000 EIDL GRANT

I have a small EIDL loan, close to $20,000. I should have no problem showing where the amount was spent. I didn't want to take more loans because I do plan to pay off other loans once things start moving again.

 

I heard that the EIDL loans can be refinanced into the PPP loans. I don't know-how, and I need to do research on that.

 

Where did you hear that? At a truck stop?

 

Click on the attachment. It is mentioned there, but it does not tell you how it's done.
How to Get Your COVID-19 Loan Forgiven

 

Could buy a trailer and then make payments using the EILD loan??

Nice post by the way.

 

ONLY part forgiven from EIDL is any advance you received

 

EDIT: If you read the article, there is a hyperlink inserted that most likely explains it. It's a long document. I didn't go over it yet. But I will. I would like to refinance the 20,000 EIDL loan into the PPP loan. I am going to keep my fingers crossed.

 

Unless you can refinance the EIDL loan into the PPP loan. Read the whole article. Click on the hyperlink that might explain it. I will do that too later in a day, hopefully.

 

No. However, I don't see why I could not buy a trailer with my own existing savings, then rebuild the savings from the business income WHILE utilizing EIDL as the intended working capital for operational expenses.
For instance, it would be inappropriate or at least suspicious to purchase a trailer for $32K lump sum on the day when the EIDL was deposited to your bank, IF BEFORE the deposit was made your bank accounts balances did not show at least $32K and after the purchase they show significantly less than $32K or $0.00. I mean, they can ask what happened to the EIDL money when reviewing bank statements even years later.


The best way to utilize EIDL would be to put it in a separate, dedicated business account and draw from it only against classified operational expenses. Things such as Income proceeds, paying yourself dividends and other expenses that can't be classified as operational or even in doubt, would be better executed on a different business account.
That's how I think and feel about this anyway.