EIDL Loan for Vacation Rental Property (Conflicting Info)

[Drew Vann]

I applied early on as we had a vacation rental property in Florida that was significantly impacted by COVID-19. We had many confirmed bookings that were cancelled due to COVID-19 and had no insurance coverage for a pandemic.

Months ago we received a $1k grant. They deposited the money and did not ask any questions or ask me to sign anything.

Recently we received an email stating we were approved for a loan- much larger and closer to our loss but not as much as we had asked for. To be honest we are still uncertain as to the extent of the loss especially if there is a second wave. Florida has shown their government will literally ban short term rentals so we are scared.

I am wary of taking a government loan and have read a lot of conflicting information. In particular, I have seen it stated, and here is an example:

https://cameonetwork.org/wp-content/uploads/2020/03/SBA-EIL-Webinar-slides.pdf

See slide 6.

"EIDLs do not replace lost revenue, lost profits or fund expansion".

Very confusing. The reason we need the EIDL is because of lost revenue (lost bookings). If I received the loan I would put the loan in a separate account and pay my mortgage, HOAs and insurance using those funds.

With that in mind can any of you experts advise on what appears to be conflicting information?