Landlords getting stiffed by sba EIDL program.

[Mike H.]

I'm sure many people have submitted for the EIDL loan which includes the grant money that was supposed have been 10k.  Many people are starting to receive emails from the sba stating that the grant amount is now going to be based on the number of employees. Yet another example of Landlords and their rental business getting the short end of the stick as usual.

Nowhere when this program was released did they say that the grant amount would be tied to the number of employees. The sba already has a specific loan program for employees. That one is called the PPP loan program. The EIDL loan was supposed to be about the estimated losses for a business due to the covid breakout.

Now here we are seeing the sba tying the grant money which was to be an advance for the eidl loan on the number of employees. Does that mean that the loan amount/approval will be based on the number of employees we have as well? Come on. 

Where is the lobbying for the rental businesses in this country? Why are we always the one business type that gets the shaft? And why is it landlords aren't complaining with a fury right now? 

Show me one other single business type in the country where the govt is forcing them to give their product/service away for free? Thats exactly what we're seeing right now with the evictions being put on hold by the government. They're requiring us to give renters free rent and there's nothing we can do about. And now the govt is finding ways to cut landlords/rental businesses out of the help that every other business type is getting.

Maybe they're going to come thru with the EIDL loan for landlords. But with this change in the program, it doesn't look good. And what makes even less sense is that they have a PPP loan for payroll/employee costs so why are they now trying to frame this EIDL program into an employee loan as well? 

That was not its stated purpose in any way. In fact, the initial website said landlords would qualify and told us where to submit the form and what option (economic disaster) to select.  Now it looks like the loan amounts they approve are going to be based solely on the number of employees we have (or don't have?) given they've changed the grant amount to use that formula already.

Again, why aren't more landlords getting tired of taking the brunt of every layer of govt red tape and policies initiated over the past few years that are killing our bottom lines and speaking out? Where is our lobbying? Some of these hedge fund backed landlord corporations should be the first ones leading the charge. American for Homes, etc.  Then again, those corporations have employees I guess so they are going to be able to get the huge loans.

It seems to me the govt should either free us up to evict tenants again OR they should be providing us with some sort of relief options via grants or loans. But to hammer us at both ends is beyond egregious!   

Its literally getting to the point where I'm just tired of getting beat up. Im starting to tell anyone starting out, don't do rentals. Its a terrible business thats only getting worse and worse. 

[Natalie Kolodij]

It never said the grant would be $10k. 

It said it would be UP TO $10,000 

And everyone ignored that first part. We had no idea how they'd decide how much to allocate for that advance on the loan. 

But every RE guru, Credit repair person, and everyone else trying to get youtube views blasted out videos about "APPLY TO GET YOUR FREE $10k!!!" So unfortunately there was a lot of generally wrong information out there because people were using this for marketing and this was a situation that was literally changing almost daily - which is why more tax people didn't release content related to it. It would be inaccurate/outdated a few days later. 

Here's the exact wording from the cares act :