All Forum Posts by: David H.

@Deisy Perez

Fantastic information thanks for sharing everyone!

@Zach Fetcko

Thanks for sharing Zach!

The senate guide is definitely useful guide for the EIDL

Please note that the terms have changed since this publication for the PPP loan portion of the guide

Most up to date info on PPP is at home.treasury.gov/

cares (although cares is likely ineligible for rental props)

Definitely use the senate guide for a high level overview of the EIDL as that info still pertains

@Andrew DeWeerd

Hi Andrew, I asked the SBA district office that question yesterday and they stated that landlords with that structure could apply. I agree though the application doesn’t make it look applicable.

That being said, the districts have been known to mix it up sometimes. If you would like to ask the SBA directly I find the New Hampshire 9am and 2pm EST call a great way to actually talk to a human there.

The conference call number for the SBA in NH is 2O2-765-I264 entry code is 522409519#

I suggest all with nuanced questions to give these conference calls a try. They usually last 20 minutes then they open the line for questions

@Shaun Weekes

Hi Shaun,

I don’t believe you can receive the grant more than once.

I’m heading to bed now so I can’t really answer anything more in detail.

My suggestion would be to google search SBA EIDL Loan program webinar. There is a lot of good information out there from the SBA and other partners like the US chamber of commerce and senate committees etc.

Also, daily the SBA in New Hampshire hosts a call at 9am and 2pm EST for free and you can ask questions at the end. I’m sure other states do this to. I’d search the state district site to find these. It’s where I get most my up to date info.

Best of luck!

Also, the eligibilty of rental property owners is a small sub- component of the EIDL Loan. EIDL Loans from the SBA will primarily be made to small businesses. This is not a housing loan. Rental Property owners in standard SBA 7a programs are not eligible.

The reason rental property owners are eligible is because disaster loan programs are run through the SBA for small businesses and home owners in crisis like hurricanes and economic crisis.

I actually agree with you that it is stupid to have SBA solving HUDs or FEMAS problems. But we have to work with what we have. Yes it is not ideal, and I am happy and would greatly welcome better assistance. Until then..

Hi Sam, the SBA has made it clear that you do not need to accept the loan terms. They have also made it clear that even if you do not get approved for the loan you get to get the advance grant as long as you are an eligible business.I'm not saying this is the best solution out there or that people should take on loans. But right now in times like this its good to have options to low interest long amortization debt. People will need money as rents and reserves dry up. We can sit here and wish the government through HUD did more. Until then I'm going to share options for people to consider that exist.

Hi Sam, 

I think you are mixing up the two SBA loan programs available right now.

The PPP loan program for payroll is administered by banks who will likely make money, yes. But as a banker working on this program, I can tell you we are not happy and struggling to make structure an entire program and remain in compliance over night. 

The EIDL Loan which I shared on this forum is funded directly by the SBA, NO BANKS are involved with the EIDL.

The EIDL loan program right now offers a $10k grant that does not need to be paid back as well. So your advice right now is to forgo a free $10k in the hopes of pressuring Congress to invent a new program through HUD?

Also, the EIDL loans are DISASTER LOANS, which this is, and are historically for businesses affected by hurricanes. This is a unique situation where many landlords will need help with working capital as their tenants fail to pay rent. It is an option that is being presented that is real. Unless you have a real concrete option that is available today, I wouldn't knock it.

Hi Bruce, no need to feel stupid! The application process has changed a couple days ago (things change rapidly these days). Currently, it looks like you only need to do the streamlined application, in which you request the $10k, and then an SBA representative is supposed to follow up with you for next steps, likely via email, though it looks like some other BP members got calls. 

Just in case anyone else is wondering, the streamlined application link again is: https://covid19relief.sba.gov/...

This is where you can apply for the EIDL Loan and request the advance grant which is up to $10k

You are correct! Thanks for catching that. It was the average monthly payroll from the prior twelve months X 2.5 or < $10MM

Hi Heather, the EIDL loan/grant is likely the best option for your situation as it is eligible for rental property owners.

The PPP loan is unclear whether it is eligible for rental property owners, my thoughts are it is not, as typical 7a loans are not. Also, even it you were eligible, the PPP loan is based off of a calculation of your average monthly payroll costs for the prior year X 2.5. It is really designed for businesses with a lot of employees.