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Updated almost 5 years ago,
COVID-19 EIDL "Non-Recourse" Loans for SDIRAs & SOLO401Ks?
Looking to see what you experts out there think of the 'legality' of the following.
I have been working on the CARES Act paperwork to help my 'day abusiveness' to keep things afloat with both the PPP Program and the EIDL Program.
As for my real estate investing business(s) I hold properties in both a 'regular cash LLC' and also 2 other LLCs, that are owned by my SDIRA and my SOLO401K. I know in regular times that loans for those second two always need to be 'non-recourse'.
While reading over the paperwork for the EIDL Loan Program, I see that loans up to 200K are 'non recourse'.
Would there be any 'prohibited transactions' or other issues with have those LLCs for the self directed accounts apply for this type of loan?
Thanks, Dan Dietz