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.
You shouldn't be putting any thing for COGS- rentals don't have this. This only applies to businesses with inventories.
The applications ask for lost rents- that's what relates to you.
Also worth noting- no one has received this loan advance/grant yet. Contacts at the SBA are saying 2-3 more weeks.
Also worth noting there's no guarantee you'll receive $10k as a non -repayment grant. The wording in the act notes the advance is "Up to $10,000". It is totally up to the bank how much they approve.
If we do not know yet the impact of the disaster, do we just enter $0 for the question - 'Rental Properties (Residential and Commercial) Only - Lost Rents Due to the Disaster'? Tha
Anyone want to take a guess on what makes more sense in my situation? I've had rentals under my own name since 2007. However, on 2/1/2020 I created LLCs and eventually transferred the properties towards the end of February.
Do you think I apply for the EIDL grant as a sole proprietor or using the LLC? I saw something that indicated that businesses had to be in existence by Jan 31, 2020 to qualify so i'm leaning towards doing it as a sole proprietor. Thoughts?
So If EIDLs track EIN or SSN and limit one application per ID number, what's to prevent someone who has been using the same SSN for several single-member LLCs to now get EINs for all of them and submit multiple applications?
I have a vacation home property that has little activity compared to last year. I'm applying for the disaster loan assistance EIDL. When filling out the form on-line, aren't cost of goods sold the advertising, cleaning and maintenance, commissions insurance legal fees, etc since I'm paying out those to keep the property going. Probably not depreciation?
And wouldn't loss of rentals be last years rents minus this years rental as of now?
You shouldn't be putting any thing for COGS- rentals don't have this. This only applies to businesses with inventories.
The applications ask for lost rents- that's what relates to you.
Also worth noting- no one has received this loan advance/grant yet. Contacts at the SBA are saying 2-3 more weeks.
Also worth noting there's no guarantee you'll receive $10k as a non -repayment grant. The wording in the act notes the advance is "Up to $10,000". It is totally up to the bank how much they approve.
Thank you for this INFO! Four absolute gold nuggets of info for landlords (of which there are clearly MANY) reading these forums right now.
Hi All, I have 4 properties under 4 diferent LLC's ( owned 100% by me) .. Should I apply for 4 different EIDL applications or should I do 1 for all of them?
Hi All, I have 4 properties under 4 different LLC's ( owned 100% by me) .. Should I apply for 4 different EIDL applications or should I do 1 for all of them?
I spoke to multiple representatives on the phone. One told me don't put anything for COGS, another said I should put all expenses. One said don't put any rental losses if you don't have any yet, another said estimate out 9 months. I got the feeling none of them thought it was important, just that we got something turned in. And now we learn that it is based on $1000 per employee and it is still unclear whether someone with schedule e income will qualify for anything since at this point it appears schedule e is a no go for PPP and most likely unemployment. Lesson learned about having all the income eggs in one basket.
@Carrie Wilson I'm wondering this as well. I've got 9 units with 2 tenants unable to pay rent (32% of rental income). But, it may well get worse next month and beyond. I can't find an answer to what to do about this anywhere.
@Renee R. Hi Renee, I recently listened to a video message which I believe was posted on Air BnB as I also have short term rentals. There was a lot of discussion on the 'salary you pay yourself' ...which I guess some folks must do and can consider as 'payroll'. I do not so, did not file the PPP for my rental income which I wish I could. I am also a realtor, so I filed the ppp based on my 2019 commissions and attached my 1099 and schedule c as I believe the ppp would be based off my net income vs the gross commissions.
For EIDL, I did include both my schedule C and E income and used $0 as cost of goods sold. I also left the current losses as $0 as I am not yet sure of the impact (i have since had a handful of short term (weekly) rental income cancel for the summer though).
Does anyone else have any new info on rental income and what we can apply for and how?
I also just read that you may not be able to apply for PPP and unemployment. Is there any truth to this?
I applied 2 weeks ago (EIDL) and haven't heard anything at all.
@Tom Bertz, so with you...you applied, and received email comfirmation that your application was received, then money just show up in your bank? No other supporting documents you have to submit?
I own 4 properties on my name as well as a property management and maintenance c-corp in PA. Obviously with everything happening tenants for some of my personal units stop paying alltogether as well as for some of my clients. Obviously part of my revenue is fees collected from rents which I do not collect now because of non-payments. Also due to quarantine majority of my maintenance wing have shut down except for emergency work. I obviously anticipating this applied for eidl at the recommendation of my accountant since he told me that this would be a better loan based on my revenue. However, stupid me I did not do the research. So now, I received the $10k, I was approved for an amount of $223k and already signed a note waiting for disbursement. But I have a few questions and considering that my accountant is in NY, I cannot really travel between states to sit down and discuss this and ask questions. He, however, is not replying to his email. I was hoping to maybe get a few answers here.
From what I understand, I can pay or reimburse from Feb.1 2020 forward for the following:
commercial rent + taxes +insurance (they are part of rent) to landlord
all utilities
payroll, paid leave.
Now what I am a bit murky about is:
Can I reimburse my business for wages paid From Feb 1, 2020 to May 1? I paid wages out of pocket even during quarantine for my guys.
Can I cover my personal investment property mortgage payments? Can I cover revenue loss based on lost rent income?
Can I pay off credit card bills?
Can I pay off 2 loans that I have? I have paid only minimum amounts for them monthly, and would like to pay them off in full.
How far into the future can I use the proceeds to cover operating expenses (rents, utilities, salaries, etc)? I do not forsee my income stabilizing for at least 6-9 months. About 40% of my tenants have been fully laid off which means that I will not see much of rental revenue until either they get caught up or owners have me evict them. Hopefully maintenance will come back, but at what rate is still a question mark. 3rd part of my business was acquisitions and rehabs, which also obviously came to a halt since most commercial loans have been put on hold.
That brings to my other question:
Can I use eidl to purchase and rehab real estate and re-sell it? I did not see anything in the contract that said that I cannot purchase assets, but I am hearing conflicting info with some rehabbers telling me that they were told by an attorney that they can, and some telling me no. Anyone else had experience with this? And this was a part of my revenue stream as well.
Can I return partial eidl loan if I do not use it all? I have not had disbursement yet and I read in instructions that they disburse it in separate parts. Now sure how that works.
My accountant also did not tell me that there are no personal guarantees for loans under $200k. I chose $230k. What can I do to drop that loan under $200k to eliminate any personal guarantees?
It says that I can use this loan to pay off "fixed loans". What does "fixed" mean in this case? I would assume it would be an installment loan such as a car loan or a home depot commerical loan?!
Can I pay myself a salary? I wanted to start paying myself a modest salary starting this year, but had to put it on hold due to the pandemic in order to cover salaries of my employees.
Thanks again for helping out. Sorry for asking too many questions, but I kind of jump into the deep end because I was afraid to miss out on the help which I need badly, and did not do the proper research.
My loan application confirmation number started with a 3 (which I am assuming indicates) EIDL
Not 2 which I guess means PPP.
I was able to get through to the SBA today, got a live operator in under a minute.
She said that their "check status" portal was down and being worked (since the process- for PP I assume- had changed). When the PPP ran out of money. They wer trying to get it up today.
But since I had applied for EIDL I did not need to do anything. I did not need to re-apply. I was just waiting for a call back from one of their loan officers. That was sort of re-assuring- in that I dont need to do anything. But also sort of not since I cant do anything and Im not sure how much faith I have in ever getting contact from them
I tried to apply now for my LLCs and got this message for LLC's I have in Mass and CT. This was when I was choosing my state and county. IS this because they just signed the new bill?
There are no active declarations for the State and County combination you have selected.
I received the 1k advance but waiting on a call or email to start the actual loan aspect. Does anyone have any insight as to what the next steps should be if I have received the advance? Is there an official application I need to submit separate from the online questionnaire that I submitted for the advance? thank you
