What can you use the EIDL loan for?Downpayment for new properties

[Divya R.]

Is that okay? I applied for the EIDL loan as a just in case the renters dont pay for a few months, but can it be used to buy more properties?

[Account Closed]

There are other threads here where people are trying to figure out what the expectations are. Overall the gist of the documents you sign seems to be that no, it can only be for losses incurred as part of the COVID economic disaster, and you agreed to allow an audit or inspection of your books to verify compliance. 

I have no idea if they will really do that or how strictly they will interpret things if they do, we are in uncharted territory.