Can the EIDL funds be used for paying off another loan? I have seen conflicting information. Some places state that EIDL funds CANNOT be used to “refinance debt”. Other places state that EIDL funds CAN be used to pay off “long term debt”. My accountant said that, based on current guidelines, the funds could be used to pay off the other loan debt since it was “a previous obligation prior to COVID 19”. Anyone know what is actually correct? I know that the SBA is continually changing things!!
Also, can the EIDL funds be used to pay federal and/or state taxes/withholdings that are behind?
Thanks!!