The EIDL loan is not taxable.
EIDL Advances Are Not Taxable; Expenses Paid Are Deductible
Most important, the new stimulus law provides that the EIDL advances are not taxable income. And otherwise deductible business expenses paid with EIDL advances are tax-deductible.Feb 3, 2021
https://financialadvisors.com/blog/blogdetails/covid-19-related-government-grants-taxable-or-not#:~:....
