Ouch! I have a SBA loan. Of course, it is in the name of the corporation. Is that a SBA disaster loan as well that were given during Covid?

From the tax perspective, if there is a loan agreement, etc, then it is fine. From the SBA perspective, if that loan was a SBA disaster loan, then what she did is a crime. Those funds cant be used for that purpose. Illegal. I have heard of the SBA audits. It's not fun.