Can I Use SBA EIDL Loan to Buy a House?

The Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) is a government-funded loan program that provides businesses with working capital during financial hardships caused by a natural disaster or economic downturn. It was created to help businesses remain open and pay expenses when their income has been disrupted. Many people often wonder if they can use this loan to purchase a house, and while the answer is slightly complicated, it ultimately depends on the individual’s situation and needs.

Can I Use SBA EIDL Loan to Buy a House?

No, you should not use EIDL Loan to buy a house because SBA loans are intended for business properties and business space. However, you can buy a house that you will use for business. For example, you can rent a house using Airbnb and purchase real estate using EIDL SBA Loan.

SBA loan

The SBA EIDL loan program offers up to $2 million in loans to help small businesses cover operational costs while they recover from a natural disaster or economic crisis. The amount of money you can receive depends on your business’s size and financial standing, but it typically ranges from $25,000 to $2 million. These funds can be used for various purposes, including paying staff salaries and expenses related to business operations.

If we analyze the types of real estate that you can purchase using an EIDL SBA loan, these are your options:

  • Commercial real estate (purchase, renovation, or refinance)
  • Industrial properties
  • Warehouses and storage facilities
  • Office buildings
  • Retail spaces and shopping centers
  • Apartment buildings and multifamily properties
  • Hotels and motels
  • Vacation rentals and Airbnb properties
  • Land (for development or expansion)

What expenses can you cover using an EIDL SBA loan?

The Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) provides low-interest loans to small businesses impacted by disasters. The loan can be used to cover a wide range of expenses, including:

  • Payroll expenses
  • Rent or mortgage payments
  • Utilities
  • Working capital and operational expenses
  • Accounts payable and other debts
  • Inventory
  • Marketing and advertising
  • Equipment and machinery
  • Repair and maintenance expenses
  • Other expenses necessary to keep the business operating

Note that the loan cannot be used for specific purposes, such as paying dividends or bonuses to owners, refinancing long-term debt, or expanding the business.

While the SBA EIDL loan program does not offer funds specifically for buying a house, it is possible to use these funds for certain home-related expenses such as repairs or renovations—provided those expenses are necessary for keeping the business running during tough times. You cannot use these funds for personal fees unrelated to your business, such as home furnishings or down payments on a new house. If you want to use the SBA EIDL loan program for purchasing property, you must do so through an approved lender specializing in commercial real estate loans.

In conclusion, while using an SBA EIDL loan to buy a house is theoretically possible, it requires careful consideration of all factors involved. It should only be done after reviewing all other options with appropriate experts.

So, buying a house for a tourism business using an EIDL SBA loan can be a smart idea.

The best way to determine if this type of funding is right for your situation is by consulting with a financial advisor or researching available real estate programs so you can make an informed decision before taking out any loan.

Please read our article about SBA Loan Status Disbursed Current. Additionally, learn more about Bankruptcy Clear SBA Loans!


Daniel Smith

Daniel Smith

Daniel Smith is an experienced economist and financial analyst from Utah. He has been in finance for nearly two decades, having worked as a senior analyst for Wells Fargo Bank for 19 years. After leaving Wells Fargo Bank in 2014, Daniel began a career as a finance consultant, advising companies and individuals on economic policy, labor relations, and financial management. At, Daniel writes about personal finance topics, value estimation, budgeting strategies, retirement planning, and portfolio diversification. Read more on Daniel Smith's biography page. Contact Daniel:

Recent Posts