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[Vídeo] How to Use the SBA EIDL Funds for Uber, Lyft, Doordash, Rideshare, or Delivery Services Drivers.


Details on how to use the SBA EIDL loan funds if your are an Uber, Lyft, Doordash, rideshare, or delivery services driver.

#eidlforuber #eidlforlyft #eidlfordoordash #eidl #eidlloan #eidlgrant #eidladvance #sba #sbaloan #sbagrant #eidlaccounting #eidlcpa

DISCLAIMER

This video is intended for education purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.

You can contact us via email at info@freedomtaxfl.com or visit our website at www.freedomtaxaccounting.com

Over 1.7 million Economic Injury Disaster Loans (EIDLs) have been approved by the Small Business Administration (SBA) as of June 21, 2020. Yet many of those who have received their approval notification are confused about how they can use funds from their EIDL loans.

Many business owners have never used a government loan program like this before and they are worried about the possible consequences of using their EIDL funds incorrectly. They also correctly observe that the guidance isn’t exactly crystal clear, and is especially confusing for independent contractors and the self-employed who may have limited knowledge of small business accounting and terms like working capital that are often associated with financial statements.

In this article we’ll discuss some popular questions we’ve received from EIDL applicants to our articles Frequently Asked Questions about EIDLs and 5 Reasons You May Want to Reconsider An EIDL Loan, as well as in the Facebook group, Business Loan Insight Financing Hub – PPP, EIDL and More on Facebook, where these loans have been a popular topic of discussion. We have edited some of these questions for clarity.

Questions we’ll tackle here include whether you can use EIDL to:

Pay yourself
Pay debt
Buy a vehicle or home
Start a new business
Pay rent or mortgages
We’ll also discuss how long you have to use the loan proceeds, what documentation you must keep and what to do if you want to return it.

Keep in mind we will share and discuss guidance from the SBA here but we can’t and don’t speak for them. Do not rely on this article for specific information on how to properly spend your EIDL funds. If you have questions about properly using your loan proceeds, we recommend you talk to your accountant, or your legal or financial advisors. You can also get free assistance by contacting the SBA Disaster hotline, your regional SBA office, your Small Business Development Center (SBDC) and/or SCORE. (Locate your local office at SBA.gov.)

How EIDL Funds May Be Used
EIDL loans weren’t created just for the coronavirus economic crisis. In fact, they’ve been part of the SBA’s Disaster Loan program for many years. They often make national headlines when a natural disaster hits an area, like when Hurricane Harvey caused flooding and business disruption for many parts of Texas. So before we dive into specific questions, let’s look at how these loans were designed to be used. According to the Standard Operating Procedures for Disaster Loans (SOP 50 39) (which predates the COVID-19 crisis):

“Economic Injury (EI) is a change in the financial condition of a small business concern, small agricultural cooperative, small aquaculture enterprise, or PNP of any size (excluding religious organizations) attributable to the effect of a specific disaster, resulting in the inability of the concern to meet its obligations as they mature, or to pay ordinary and necessary operating expenses. (Note: the SBA opened up EIDL to religious organizations impacted by coronavirus.)

Economic injury may be reduced working capital, increased expenses, cash shortage due to frozen inventory or receivables, accelerated debt, etc. Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury (emphasis added).”

Many applicants aren’t familiar with the term “working capital,” though, and as a result they find that description confusing. We were unable to find an official SBA definition of working capital, but generally, working capital loans are generally used to pay day-to-day expenses of the business. These might include salaries, inventory, rent, utilities, and short-term debt or long-term debt payments, for example. (Again this isn’t an official SBA definition.)

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Caso ainda não conheça nossa comunidade, o Mundo Uber tem um fórum onde os membros podem interagir e postar dicas e dúvidas para os demais motoristas de aplicativo. Para acessar o fórum, é bem simples, basta clicar nesse link:
https://mundouber.com/forum/

27 Comentários

  1. JAB NOLA

    Thank you for the information. Very helpful. My only question is around taxes. You make a large point in regarding taxes coming from a personal account. Everything I have read and also the advice of others, business IRS tax payments (like quarterly estimated taxes) and IRS tax debts can clearly come out of EIDL funds. Do you have revised or a different interpretation of this issue?

  2. sam hanoh

    Hello

    My busines operate under LLC and it is rental income from resident houses (I don’t buy or sale goods )

    in first question what should I choose ?

    1.Applicant is a business with not more than 500 employees. Or

    3 (Applicant is an individual who operates under a sole proprietorship, with or without employees, or as an independent contractor.)

    Also under cost of goods , is it mean my expense such insurance ,utility etc ? I don’t have schedule C and I don’t take salary

  3. POPPII CHUNO

    This video is so informative 🔥🔥🔥🔥🔥🔥🔥So many loan programs at SBA you don't even have to deal with the EIDL. People hear one word or Acronym and go crazy. Lmao just go directly to SBA and get the proper loan for you.

  4. Gyekye Appiah Kubi

    Excellent information, thanks.
    How about if I'm no more interested in my current business, for example the rideshare business, and want to stop completely , but I want to venture into a deferent self-employed business, can I use the EIDL loan in the new business, so far as I'm committed that I should to pay back the loan?

  5. COME TO TRUTH OF ISLAM

    🙏 I have seen at least 30 video on this topics. Honestly, this was the best video i have ever seen about eidl. I would like to thank you for such a helpful video. I have a question and this is that, i received eidl loan in my personal checking account as a self employed . Then i have opened a brand new checking acc in same bank . And i have transferred the whole eidl loan to that new checking acc. Now i am using my weekly uber rent to garage, gas,tool,carwash etc. Is it ok to use eidl loan from a checking account or i must have to have a business account?
    Thanks again ? 🙏

  6. gerald Smith

    So I have a question I have been fighting to get my funds deposited into my account since June 8 th what happened was the name on my application was Uber when it should have been my name I've been in communications with someone at the disbursement center in Kingston Texas and it's like she's taking her sweet little time so I have not received the funds yet even though the contract was signed and approved like June 7th so am I responsible for interest or anything cuz I'm about ready to tell the lady to take the loan and shove it up her ass.

  7. zaatch wilson

    What if my car that I've been using for Uber fulltime for the last year and a half, has now aged out of what the year requirements for vehicle for Uber is. Is there anything I can do to help me get a newer car that is eligible for Uber?

  8. BEAUTIFUL WORLD

    Hello sir, I am an Uber driver. I applied for the loan and was approved for $7500. It showed pending verification for more than 2 weeks. When I emailed the SBA and enquired about it, they asked me what my business was. I replied them that I am an Uber driver. Next day my account page shows that my loan was declined. They never gave me any explanation as to why I was denied. What should I do now? Please advise me. Thanks

  9. Addis Ababa

    Hi first of all i just want to say Thanks for the video next am just wondering the one who pay off his car with out any information or he don't read the term & conditions what's gonna happen or what he have to do ? THANKS !

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