All Forum Posts by: David H.

@Daniel Dietz

Hi Daniel,

You're most likely going to fill it out for the LLC in this situation

Typically, The loan would require all owners with 20% or greater to personally guarantee the loan. There has been an amendment however waiving personal guarantees for loans under $200,000

@Scott F.

You are correct, there is a $10,000 grant eligible for landlords as well. It’s not implemented just yet, but the mechanism is an advance that is requested upon application , this advance must be paid by the SBA to the applicant in 3 days. The applicant can keep the $10k and doesn’t need to pay back even if denied the loan.

@Mason Hickman

Unfortunately I am unable to share the actual bill.

@Mason Hickman

Hi Mason, I did read the bill and this language is in there on page 67-68.

No income restrictions on this particular grant as far as I could tell.

@Jill Iwanski

Hi Jill, the Emergency Disaster Grant which is function of the SBA EIDL loan has not been implemented yet. The grant portion of the EIDL loan was just signed into law on Friday. It will likely take a week at least to get out into place on the website.

The website will likely be the same as it is for the current EIDL as it is an advance request portion of that process.

The following is the site to go to:

Disasterloan.sba.gov/ela

Again, the grant portion of this is not live yet.

@Jared Crocker

No worries

So the EIDL loan proceeds may be used to pay for the following:

1. Fixed debts

2. Payroll

3. Accounts payable

4. And.... other bills that could have been paid had the disaster not occurred

I view number 4 above as a catch all that would make CC payments totally eligible

That being said I don’t think you can refinance the entire balance, rather I believe you are allowed to make payment on the CC.

Honestly, I don’t see the SBA being incredibly strict when it comes to that, but I could be wrong. They suggest maintaining receipts for up to 3 years to be able to prove use of loan proceeds in an audit.

Now that the CARES act has passed there will be some interesting beneficial provisions added to the EIDL, as follows:

1. No personal guarantee required for loans under $200,000

2. No credit elsewhere test anymore

3. The ability to ask for an advance of up to $10k which must be paid to you in 3 days from application, regardless of approval. This is a grant, and does not need to be paid back even if denied. This is a huge awesome provision, not yet implement but just approved through Congress. Technically $10 billion has been allocated for this, so 1 million small businesses can receive this $10k grant

@Jared Crocker

Hi Jared,

Are you asking about the EIDL loans that have been in the news or just normal standard SBA 7a loans?

The EIDL loans in the paper are eligible for rental property owners, but they are a disaster loan program which is different entirely in functionality.

You could in my opinion, only my opinion, make payments on CC that was used only for business purposes with the EIDL loan proceeds. That being said, that program is unique and doesn’t follow standard SBA program guidelines.

@Jared Crocker

Hi Jared,

As an SBA professional I can hopefully shed some light on this.

Technically you can refinance credit cards under the following general circumstances:

1. Be an eligible small business (rental properties don’t qualify for this program, contractors however do)

2. The credit card ideally is in your businesses name

3. Must certify that all balances to be refinanced were used for exclusively business related purposes. No dentist appointment, seen that a lot lol

4. If the CC is in your personal name, see previous requirement for line 3 and... all payments being refinanced greater than $250 you must provide a receipt for

5. Must provide copy of your credit card statements

6. Cannot refinance any debt already paid for, cannot refinance any debt used for personal reasons (repeating this because it is so crucial)

Hope that helps!

@Nitanga Jean De Dieu

There is a provision in the bill referred to as:

“Emergency Disaster Loan Grant” on page 68-69

Which adds to the current EIDL loan, which rental property owners can apply for, the ability to request up to $10,000 in an advance, paid in 3 days, after application has been made.

Even if the applicant is denied the loan they may keep the $10k grant and do not need to pay said grant back. It’s essentially a free $10k and it’s going to be quick. If it is implemented that is.

They allocated $10 billion for this grant program, so essentially the first 1 million who ask for it get it.

It’s not in effect yet, but when it is, I believe it is the best I’ve seen for smaller property owners affected by the virus.

@Michael K Gallagher

Hi Michael, here is some information/ links to information that will hopefully help. These are all from SBA official accounts:

GET LOCAL: SBA regional and district offices are hosting information webinars on #COVID19 disaster assistance for small businesses.

🔎 Find regional and district offices near you: https://sba.gov/local

📧 Subscribe to local email newsletters: https://sba.gov/updates

📱 Follow regional and district offices on Twitter: https://lnkd.in/dUSYArj

SCORE (free mentors from SBA) are offering the following: kind in mind this is for Maine, but can easily be tailored for your state with the correct modification to search.

“We're open and here to help during these challenging times. Try virtual mentoring with SCORE! We're offering video, phone, and email mentoring. Get a mentor: https://bit.ly/2JhQNQV. #SCOREMentors #SmallBusiness #Maine”

More info from SBA

“We've got #Coronavirus (#COVID19) guidance and loan resources for #smallbusiness right here.

▶️ https://lnkd.in/dnmE9A8 ◀️”

Also the New Hampshire District Office is hosting conference calls every business day at 9am and 2pm EST. The number is: (2o2) 765-I264 and the attendee code is 522409519#

Best of luck!!!