EIDL Use of Funds and Real Need?

[Chris McHaney]

We have been approved for the EIDL loan, but after taking a look at all of the requirements for use of funds, I can't see how it's advisable for landlords to take this loan, unless you are truly in need, hence the term disaster. At the time we initially applied all bets were off, and uncertainty abounded. 

The only way that I can see accepting these funds would be to set up a new checking account for the funds to arrive in, and then use that account over the proceeding months to pay utilities, insurance, taxes, "Normal" mortgage payments, and anything else deemed working capital by the SBA. If doing so, this still seems like a back handed way to use the funds if most of your tenants are still paying rent. I emphasize most here.

Any other take on this loan? The collateral requirements, use of funds, etc seem to restrictive for the need in my opinion. Sure, I'd love to utilize their funds to pay off one of our mortgages, essentially refinancing, the debt, but that's not the point of the the whole loan program in the first place.