What can an SBA EIDL be used for?
Short answer
Working capital and normal expenses the disaster left you unable to pay, such as rent, utilities, fixed debt payments and health benefits. An Economic Injury Disaster Loan (EIDL) cannot expand facilities, buy fixed assets, repair damage, refinance debt, or pay dividends or bonuses (sba.gov/disaster, read November 8, 2026).
An EIDL pays the bills your business could have met had the disaster not happened. SBA describes these loans as working capitalMoney for day-to-day costs such as payroll, rent and inventory. Full definition for ordinary and necessary financial obligations (sba.gov/disaster, read November 8, 2026).
Allowed uses
- Working capital.
- Normal expenses such as continued health care benefits, rent and utilities.
- Fixed debt payments.
Uses SBA does not allow
- Expanding facilities.
- Buying fixed assets.
- Repairing physical damage. A separate physical disaster loan covers that.
- Refinancing debt.
- Paying dividends or bonuses.
- Paying back loans to stockholders or principals.
Fixed debt payments versus refinancing
Making fixed payments on existing debt is a listed use. Paying off or replacing that debt with EIDL money is refinancing, and SBA does not allow it.
What sets the amount
SBA says the amount depends on how much financial impact you experienced and your company's financial needs. The maximum combined with a physical disaster loan is $2 million.
Compared with 7(a)
A 7(a) loan can finance fixed assets and working capital and can refinance eligible debt (SOP 50 10 8.1, Sec. A, Ch. 3, Para. A; App. 14).
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