All Forum Posts by: David H.

@John Dennis

As far as I understand it is 1 per business/individual.

I can’t say for certain though.

I am quite sure that the SBA would not want individuals with multiple companies receiving multiple grants/loans as there will be a limited number of grants available.

Typically the SBA views businesses with common ownership as affiliates and calculates them into the size and eligibility calculation.

This is a unique loan program administered directly by the SBA and Treasury and it’s rules seem quite fluid so I cannot say anything for certain as it pertains to your question unfortunately.

Best of luck!

HI Gary,

The EIDL Loan/Grant is a disaster loan program administered and funded directly by the SBA and Treasury. The loan terms are up to 30 years, fixed 3.75%, first 12 months of payments deferred. Rental Property owners are eligible for this program. There are some wider eligible uses of proceeds in this program as well, such as mortgage principal, fixed debts, accounts payable, increased cost of good due to Covid, etc.

The PPP Loan or "Paycheck Protection Program" loan is designed to help keep employees on payroll. It will be funded by the banks, SBLC's and fintech lenders. It has a complicated loan forgiveness process which requires the business owner to retain employees for an 8 week period after the loan origination or by June 30th at the latest basically. The uses of proceeds are limited to payroll costs, mortgage interest, rent, utilities and eligible debt from an EIDL loan.

75% of the loan forgiveness has to come from Payroll costs. So basically, this program is best and only suited for employers with employees that they can retain. It will be challenging for many industries if the lock down continues to actually benefit from this loan.

Also, the PPP loan is a 2 year term with the first 6 months deferred and a 1% interest rate (as of a few hours ago). Also keep in mind most banks are indicating they will only do PPP loans for existing customers due to anticipated volume.

I'm literally working all day and night on the PPP loan program setup for a bank. It is not ready yet at any bank, as the Standard Operating Procedure has not been released by SBA. The Forms have not been finalized. The Forms out right now are only drafts. It will be a very interesting day tomorrow to say the least.

For the vast majority of the Bigger Pockets community the EIDL loan/grant will be the best if not only option coming from SBA in my opinion.

@David Falkoff

Hi David,

I can’t answer these questions for certain, I’d suggest attending one of the daily webinars hosted by SBA. New Hampshire has a great call at 9am and 2pm EST everyday where you can ask questions at the end.

My understanding is you can only apply once. They would consider your businesses affiliated.

Your best bet is to attend that call or search for another call being hosted in your area if you prefer. The number for the NH call is in a post in this thread somewhere.

Best of luck!

Sam, this thread is about the EIDL program which is run and funded directly by the SBA and Treasury.  NO BANKS are involved with EIDL loans.

EIDL loans are primarily for Small Businesses. It is a sub-component that rental property owners can apply. It was not designed for rental property owners, rather it was designed for small businesses. Rental property owners however can take advantage of the unique benefits of low interest, long-term debt to help keep them afloat if needed.

@James E.

Good info and thanks for the update.

The 3 day timeline was written into the Final CARES Act, that’s why it’s been referenced, it specifically states 3 days. That being said not surprised they weren’t able to adhere to the timeline.

The SBA has had to hire hundreds if not thousands of temp employees basically overnight to field these calls, that is why they don’t have much detailed info.

I think your advice to sit patiently is wise.

@Nicole Heasley

I can’t answer that. That would be a question you would want to ask your lender.

I imagine every bank would approach such a situation differently depending upon your DSC and credit history.

@Sam Cherry

Sam, no one is saying this is a solution.

This is just an option available.

You might be surprised that disaster loans from the SBA traditionally even go to homeowners, not even landlords. That is likely why this disaster loan has the element of being eligible for landlords.

The SBA is not screaming from the rooftops to have landlords apply to this. I just simply wanted to share that landlords are eligible as it is not widely understood.

Please, no one should expect this to be a solution, it is a tool in the tool box.

I expect more direct relief tailored to landlords to come from elsewhere. For now, this is a tool that exists. It’s not perfect. Nothing is with the government.

@Michael Frankel

The SBA has updated the application process a few times and streamlined the application. The SBA will reach out to you for more information if needed.

From my understanding they are trying to speed along the bulk of the smaller dollar loan amounts with the new app. If there are larger dollar loans they will request more detailed info. That was my impression.

Good evening everyone, so many of you are asking about the webinar so I thought I'd provide this link: https://www.sba.gov/sites/defa...

Also, please keep your eyes out for updates, this is a fluid situation. I heard rumors that real estate will no longer be required as collateral on these loans. They will take a blanket ABA UCC filing. I have yet to find this in writing so I am hesitant to share, but I wouldn't be surprised. Please if anyone else can dig this up in writing I think it would be a great benefit to the group.

@Megan Bridgette

No the EIDL is a different loan than the PPP loan.

The PPP loan is not live yet and it’s for payroll. It’s likely not a program that is eligible for rental properties.

The EIDL loan is eligible for rental property owners and has a streamlined app with the option to request an advance grant while it lasts. If more info is needed they will follow up with you.

It all depends on your situation and loan request if they ask for more info it looks like as of now.