did you read the terms of the advance - see this for what the EIDL advance can and can not be used for;
What EIDL Loans Can Be Used For
The great thing about EIDLs is that there are very few restrictions on how funds are spent. According to the SBA, funds should be used for “financial obligations and operating expenses that could have been met had the disaster not occurred.”
What does this mean? Quite simply, it means that your day-to-day operating expenses can be covered using EIDL funds. EIDL funds are meant to help you keep your business doors open following a disaster. These loans help fill the gaps in income caused by a disaster (such as the COVID-19 pandemic) and serve as working capital to help your businesses be successful despite the challenges that come following such a disaster.
Let’s take a more specific look at how your EIDL funds can be spent. Qualifying expenses that can be covered using an EIDL include:
Working capital
Rent
Utilities
Payroll expenses
Fixed debt payments
Health care benefits
Supplies
Inventory
Marketing & advertising
Accounting & bookkeeping services
IRS tax payments
You can use funds to pay yourself but only for work that you are doing within the business — dividends, for example, are not covered.
It should also be noted that there are further restrictions on how funds are spent if you also received a Paycheck Protection Program (PPP) loan.
How You Can’t Use Your EIDL
Let’s take a look at the straightforward restrictions, then look at a few that are a little more complicated. You are restricted from using your EIDL funds for the following purposes:
Dividends & bonuses
Acquiring fixed assets
Expansions
Refinancing long-term debt
Repairing or replacing physical damage
Relocation
you have violated the terms of the advance since you used the money for an impermissible purpose
read the agreement as to what the rules are and what to do if you violate them. you may have to contact the SBA since this falls outside iof tax laws which is the purpose of the forum.
