If making the 20% down payment leaves you cash strapped, then there is risk that you could lose the home during a bad economic situation. 

In the end we are a hyper capitalist society and the laws of economics will win in a big way.

Economic failure has begun...”

The economic impact will remain and we will be experiencing the fallout

Because I am not an expert in construction but I would like to think after doing a few flips I have a general idea of what to expect, and could spot when work appears to be sub par or not fully completed to the extent it should be.

Overall the gist of the documents you sign seems to be that no, it can only be for losses incurred as part of the COVID economic disaster, and you agreed to allow an audit or inspection of your books to verify compliance. 

I'm sure you can get some expert legal advice on the con's of structuring a JV in the explanation you posted. 

@CJ M.https://www.phelps.com/what-you-need-to-know-before-applying-for-an-economic-injury-disaster-loan-eidl-4-13-2020Would appliances and HVAC be considered inventory??

My partners however are concerned with Covid-19's affects on:Supply/Inventory- Are more people selling because they are facing economic hardships?

The house is valued at 35k, mainly due to small town economics.