Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury. The examples of Working Capital may include salaries, inventory, rent, utilities, and short-term debt or long-term debt payments.

Following are the examples of EIDL that may not be used for.

1. Payment of any dividends or bonuses; 
2. Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant;
3. Repayment of stockholder/principal loans, except when the funds were injected on an interim basis as a result of the disaster and non-repayment would cause undue hardship to the stockholder/principal; 
4. Expansion of facilities or acquisition of fixed assets (including vehicle or home); 
5. Repair or replacement of physical damages; 
6. Refinancing long term debt; 
7. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose; 
8. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations.
9. Pay any penalty resulting from noncompliance with a law, regulation or order of a Federal, state, regional, or local agency. 
10. Contractor malfeasance; and 
11. Relocation or starting a new business

Clients should keep careful track of how EIDL proceeds are spent just in case the SBA or another governmental agency asks to review that information in the future.