All Forum Posts by: David H.

@Jeff Bousquet

I don’t believe so, however I can’t say for certain.

@Chad C.

Hi Chad, the loan I shared about is not a normal SBA loan. EIDL Disaster Loans are originated by only the government and they have wider eligibility and different credit standards.

Standard SBA 7a loans for instance are not eligible for rental property owners.

Also, not every lender can do standard SBA 7a.

There are PLP (preferred lenders) which have delegate authority to do 7a loans without the government involved. There are other degrees as well, like CLP I believe and GLP. And depending on the structure of the loan it may have to go to the government anyways (refinancing same institution SBA debt)

The proposal you read about is very interesting however I don’t expect it to pass in that form. It would be a separate loan from EIDL and it would be a breed of SBA 7a because if bends the existing rules so much. It likely will have a much higher interest rate as standard 7a is typically Prime + 2.75

@Chad C.

Yea, definitely aggressive in lending and approving these loans. They have indicated numerous times they are trying to work with borrowers here.

I’d suggest these loans to any small business owner, it’s worth a shot, it’s free to apply and you don’t have to accept the terms if you don’t like them.

Key thing to note is these are eligible for landlords but ineligible for real estate developers.

Good luck!!!

@Dinesh Yernool

Hi Dinesh,

From my understanding you have the ability to submit projections to demonstrate the projected lost income from rents.

I believe as do others that the SBA will be very aggressive with these loans.

Best of luck!!

@Mike H.

Love the info and first hand experience! Sorry to hear about the technical difficulties with the website, I’ve been hearing this is an unfortunate common problem. The website was only designed for regional disasters. This will be an unprecedented undertaking.

I think you are 100% correct that the SBA will be very aggressive in making these loans.

I’d be very interested to hear how this all pans out for you. Best of luck!!!

@Carl LaRosa

Good question. I can’t say for certain how the SBA will approach this but I can do my best to guess.

They will issue up to $2mm for your business including all affiliates.

So for instance you have an llc for each of your 3 properties, you are eligible for a maximum of $2mm total.

They may UW the deal per property / LLC but they most likely will have you apply under one LLC and ask for your affiliates and come to a calculation that way.

I wish I could better answer this question, best bet is to just apply, it’s free and you don’t have to accept the loan.

@Scott Mac

Hi Scott, the maximum unsecured loan amount is $25k

All loans above $25k are secured by collateral if available, though the SBA will not decline a loan for lack of collateral.

Personal guarantees will be required of all owners with 20% or greater ownership

Attention!!!!

Landlords / rental property owners in affected areas of the Covid19 pandemic

The SBA Economic Injury Disaster Loans (EIDL) are available for rental property owners if your state has already made the application to the federal gov.

I know Connecticut, Massachusetts, Maine, New York all have. Expect all states to eventually apply.

- These loans are up to $2MM

- The loan terms are 30 years, 3.75% rate

- First 12 months of payments deferred 💥

- No prepayment penalty

- Funds are to be used for working capital needs

Apply for free at the following:

https://disasterloan.sba.gov/e... sure to select Economic Injury!

These loans will take a minimum of 3 weeks to get to you so start now! There will be a overload of applicants and this is first come first served. Be prepared and submit a complete package! Details outlined at the link above!

ATTENTION LANDLORDS!

SBA Economic Injury Disaster Loans (EIDL) are eligible for Rental Property Owners.

Standard SBA Loans are not available for passive income (except Hotels and Self Storage)...

THESE ARE NOT NORMAL SBA LOANS

During Disasters the SBA Disaster Loan Programs expand the eligibility to non-profits and even homeowners in certain circumstances.

Please visit https://www.sba.gov/sites/defa...

See slide 7, which clearly states that Rental Property Owners are Eligible for relief.

Please understand there will be a massive bottleneck and these loans could take 4-12 weeks to actually hit the streets. If you need one of these loans, COME PREPARED. Follow the directions in that slide deck. Fill out forms right the first time. The SBA is NOT staffed for a nationwide disaster. These loans are not coming from banks, they are coming from the SBA, this will take a while. It will be first come first serve.

Loans may be up to $2MM secured and up to $25,000 unsecured

The historical approval of these loans is < 60% . I'm not saying you can or will get these loans. I'm only providing this information in the hopes it will help those property owners in severe distress in the coming weeks/months. This economic disaster WILL be worse than most expect. Plan accordingly.

ATTENTION LANDLORDS!

SBA Economic Injury Disaster Loans (EIDL) are eligible for Rental Property Owners.

Standard SBA Loans are not available for passive income (except Hotels and Self Storage)...

THESE ARE NOT NORMAL SBA LOANS

During Disasters the SBA Disaster Loan Programs expand the eligibility to non-profits and even homeowners in certain circumstances.

Please visit https://www.sba.gov/sites/defa...

See slide 7, which clearly states that Rental Property Owners are Eligible for relief.

Please understand there will be a massive bottleneck and these loans could take 4-12 weeks to actually hit the streets. If you need one of these loans, COME PREPARED. Follow the directions in that slide deck. Fill out forms right the first time. The SBA is NOT staffed for a nationwide disaster. These loans are not coming from banks, they are coming from the SBA, this will take a while. It will be first come first serve.

Loans may be up to $2MM secured and up to $25,000 unsecured

The historical approval of these loans is < 60% . I'm not saying you can or will get these loans. I'm only providing this information in the hopes it will help those property owners in severe distress in the coming weeks/months. This economic disaster WILL be worse than most expect. Plan accordingly.