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Daycare and Taxes>EIDL Loan-Uses
twinsand4 04:29 PM 07-08-2020
I qualified for $6000. Iím so nervous to accept it bc I heard you can only use it for certain things. This summer I was going to put up a fence in my back yard and redo the floors and paint and update my daycare room. Can I use the money for that kind of stuff?
I would greatly appreciate any advice!
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TomCopeland 07:00 AM 07-09-2020
Originally Posted by twinsand4:
I qualified for $6000. Iím so nervous to accept it bc I heard you can only use it for certain things. This summer I was going to put up a fence in my back yard and redo the floors and paint and update my daycare room. Can I use the money for that kind of stuff?
I would greatly appreciate any advice!
You cannot use the EIDL loan for repairs or fixed assets. Fixed assets include items lasting longer than a year: furniture, appliances, fence, deck, home improvement, etc. However, you can use it for any other business expense including paying yourself payroll. Once you pay yourself payroll you can then use that money for the items you list. To determine how much to pay yourself for payroll, use the average weekly profit from 2019 and pay yourself that amount each week.
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twinsand4 11:10 AM 07-09-2020
Ok. Thank you. I donít have a business account so if I just put it in my savings account can I jsit transfer that weekly amount over each week?
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Jo123ABC 01:10 PM 07-09-2020
Originally Posted by twinsand4:
Ok. Thank you. I donít have a business account so if I just put it in my savings account can I jsit transfer that weekly amount over each week?
I also want to know this! Is it going to for-sure be forgiven or is that just the ppp loan? I received funds from both
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TomCopeland 07:13 AM 07-10-2020
Originally Posted by twinsand4:
Ok. Thank you. I donít have a business account so if I just put it in my savings account can I jsit transfer that weekly amount over each week?
Yes, transfer money weekly into your savings account.
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TomCopeland 07:15 AM 07-10-2020
Originally Posted by Jo123ABC:
I also want to know this! Is it going to for-sure be forgiven or is that just the ppp loan? I received funds from both
The EIDL "loan" is not forgivable. The EIDL "advance" of $1,000 per employee is forgivable. The PPP is forgivable. If you got both the PPP and the EIDL "advance", you must reduce the forgivable portion of your PPP money by the amount of the EIDL "advance".
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