Are There Restrictions
on What Microloan Money Can Be Used For?
Yes, there are guidelines and
restrictions in place for what SBA-associated microloan money can and
cannot be used for. While nearly all business purposes expenses and purchases
qualify for use with the microloan funds, there are two main areas which
money can not be used for.
If you would like to use microloan
money to pay off existing debts, or to use the money to consolidate current
debts, you should persue another avenue for funding, since microloan money
cannot be used for any sort of debt repayment.
Also, you cannot use this money
to purchase any real estate, even if it is purchasing property for the
exclusive use of the business.