can you use sba loan for personal use

Best answer


SBA loans are meant exclusively for business purposes, which means that youcannot use the money to fund any of your personal life. This includes paying your rent and utilities, paying for personal technology, and paying for a car for personal use.

People also ask


  • Can I use an SBA loan to buy something for my business?

  • For example, Small Business Administration (SBA) loans can be used only to operate your business. You can’t use them to pay off other debts, buy something in hopes of an increase in value, or for any purpose that is not considered to be a sound business purpose as determined by SBA..

  • Why can鈥檛 I use my SBA loan to pay off debt?

  • Money used to pay your personal debts should be claimed as income and therefore income taxes paid thereon. However, if you use your SBA funds to pay your personal debts, you receive income tax free. The other reason for the restriction surrounds the primary goal of the SBA program to help small businesses and create jobs.

  • How long do you have to use an SBA loan?

  • These SBA loans must be used over an 8-week period, at which time businesses will need to apply through their lender for forgiveness. Wages, commissions, and salaries: Use the funds to keep your employees on staff instead of cutting their hours, furloughing them, or laying them off.

  • What can I use my small business loan for?

  • These SBA loans must be used over an 8-week period, at which time businesses will need to apply through their lender for forgiveness. Small businesses that receive a PPP loan should use it for: Wages, commissions, and salaries: Use the funds to keep your employees on staff instead of cutting their hours, furloughing them, or laying them off.

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