EIDL loans and purchasing fixed assets

[Kenny M.]

I was talking to someone and she said if a company receives any EIDL loan they cannot purchase any fixed assets during the time you have the loan outstanding. Should this be true, what happens to people who have the loan and are also in real estate? Does this mean a person or a business can no longer purchase buildings with other funds? Very confusing.

[Linda Weygant]

I think either you or the person you were talking to has misunderstood.

You may not use EIDL funds to purchase an asset or refinance a loan.  If you have other funds available for those purposes, you may use those.  EIDL funds are to be used for your regular business operating expenses.  The goal of EIDL loans is to keep your business afloat.