Best answer
Like many small business owners, your business exists as an extension of yourself. It is your identity and your hard work. However,you cannotuse you SBA loan to pay off your personal debt, such as credit cards, mortgage or other debts.
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.
Can a renter apply for an SBA loan?
As a homeowner, renter and/or personal property owner, you may apply to the SBA for a loan to help you recover from a disaster. Loan Amounts and Use Homeowners may apply for up to $200,000 to replace or repair their primary residence. The loans may not be used to upgrade homes or make additions, unless required by local building code.
Can I get an SBA loan to repair my home?
As a homeowner, renter and/or personal property owner, you may apply to the SBA for a loan to help you recover from a disaster. Homeowners may apply for up to $200,000 to replace or repair their primary residence. The loans may not be used to upgrade homes or make additions, unless required by local building code.