Business & farm

The EIDL   is a LOAN ...  NOT INCOME  so you do not report it as income.  The interest paid on the loan is a deductible  expense just like if you used a credit card or line of credit to pay expenses.

 

https://www.sba.gov/sites/default/files/2020-09/COVID%20EIDL%20FAQ%20rev%20092120-508.pdf