SBA EIDL Loans are ELIGIBLE for Rental Properties

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SBA EIDL Loans are ELIGIBLE for Rental Properties

David H.
Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes

ATTENTION LANDLORDS!

SBA Economic Injury Disaster Loans (EIDL) are eligible for Rental Property Owners.

Standard SBA Loans are not available for passive income (except Hotels and Self Storage)...

THESE ARE NOT NORMAL SBA LOANS

During Disasters the SBA Disaster Loan Programs expand the eligibility to non-profits and even homeowners in certain circumstances.

Please visit https://www.sba.gov/sites/defa...

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.


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Natalie KolodijBusiness Member
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
6y

A few quick notes....

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. 

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  • Christopher B.
    Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    5y

    @Roy Gutierrez, I ended up writing my congresswoman, Rashida Talib, and someone called from SBA and got it taken care of.  The first person didn't, but the second person had it funded like the next day after we spoke.  You are in Michigan, so you may be covered by the same representative.  If not, whoever supports your district or region, hopefully can help.  I just explained what had happened, and they took it from there.  Before that, I was having the exact same issues as you.  

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  • Roy Gutierrez
    Investor · Oak Park, MI · Member since 2014 · 299 posts · 47 votes
    5y
    Originally posted by @Christopher B.:

    @Roy Gutierrez, I ended up writing my congresswoman, Rashida Talib, and someone called from SBA and got it taken care of.  The first person didn't, but the second person had it funded like the next day after we spoke.  You are in Michigan, so you may be covered by the same representative.  If not, whoever supports your district or region, hopefully can help.  I just explained what had happened, and they took it from there.  Before that, I was having the exact same issues as you.  

     Thank you so much for those new Christopher, there might be hope! I'll send you a DM if you don't mind.

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  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    @Roy Gutierrez I´m sorry that happened. Maybe I just get a better processor. I did nothing different from what you named. They guy called me early on because I requested an extension. I just called the regular number I always had. He asked me a few questions and within a few days I had the increase. A thousand dollar grant was better than nothing but a thousand dollar loan paid over 30 years was not worth me even setting up automatic payments. 

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