Disaster SBA loan for Short Term Rental losses?

[Cheryl Dopp]

I have had over $12,000 in losses from cancellations where airbnb broke short-term rental contract terms and conditions (strict policy 1 week before check-in, 50% before). The guests should have been offered travel insurance, like homeaway does, but instead airbnb made the hosts bear 100% of the burden of this pandemic and its impact on rentals. Lawsuits are pending.

Has anyone successfully used a Disaster SBA loan and does it apply to only to LLCs or can apply if your taxes show on Schedule C or E? 

Any guidance is much appreciated! 

Cheryl

[Nathan Gesner]

I know quite a few people that are applying but haven't heard of anyone being approved or what they received.

Does it make sense? If you borrow $15,000 at 4%, it will cost you $1,700 in interest and five years to pay back. 

I'm not trying to bash you, but you shouldn't have to borrow money after just a few weeks of losses. This is a good time to evaluate how you operate. Every investor should have a reserve set aside to handle vacancies, major repairs/renovations, and other disasters. Failing to prepare exposes you to risk and increases the chances of you losing everything.