Attention!!!!
Landlords / rental property owners in affected areas of the Covid19 pandemic
The SBA Economic Injury Disaster Loans (EIDL) are available for rental property owners if your state has already made the application to the federal gov.
I know Connecticut, Massachusetts, Maine, New York all have. Expect all states to eventually apply.
- These loans are up to $2MM
- The loan terms are 30 years, 3.75% rate
- First 12 months of payments deferred 馃挜
- No prepayment penalty
- Funds are to be used for working capital needs
Apply for free at the following:
https://disasterloan.sba.gov/e... sure to select Economic Injury!
These loans will take a minimum of 3 weeks to get to you so start now! There will be a overload of applicants and this is first come first served. Be prepared and submit a complete package! Details outlined at the link above!
I just submitted my application. The website is struggling. It wouldn't let me upload the files for certain things they require because the upload feature wasn't working. I even tried on internet explorer (somehow that was their preferred brower). But this loan may be huge for landlords with a lot of properties. I have 82 houses. If 50 don't pay the rent, that would be a loss of roughly 70k a month. That'll eat thru my reserves awfully quick.
But I saw on the front page of the loan request app that they spefically state that landlords with rentals can get the loan and they even give us the direct instruction as to some selections we need to make (i.e. economic injury - just as David mentioned in his initial post).
To me, I look at it as though they should be able to make some projections as to losses. Maybe a worst case of 50% collections for a period of 6 to 9 months? And then offer a loan up to that amount. Again, how they come with their numbers will determine how useful the loan will be. A 10k loan is going to do nothing for me. A 100k loan might be the difference in keeping all my payments with the banks current and still having enough money for repairs and the like so I don't lose my houses.
Honestly, a worst case scenario of this going on for 9 months and say 50 percent collections and no option to sell the homes because we couldn't evict the tenants could cause me to lose everything. Its just not a scenario we can plan for. I've always said that there could come a time when there simply weren't enough renters because everyone was able to buy again. Well, that would mean house prices would be huge and i"d just jump on the bandwagon and sell and take my profits.
But how in the world do you account for something like this? Little to rents coming in. No ability to evict the tenants to sell the property as an exit? That just doesn't exist.
But thats why I really believe the sba is going to be super aggressive in these landlord loans. If I can get thru this with all my payments being kept up and the only hit to me is a new loan/debt of say 200k at 3.75%..... guess what, I'll be tickled pink. I can factor that in as the cost of doing business and then show these banks how I was able to survive in one of the worst debacles ever seen.
We'll find out....... :-)
Absolutely nothing on my end.
Did Anyone receive any progress on their loan application this week?
Yes! I woke up to my loan funded today.
I applied as sole proprietor - with dba - no entity - EIN for my DBA and Social Sec for me (the one employee)
After reading on the forums here I calculated my request based on 6 months gross rents using the previous 12 months
Everything for me was done online with no documents requested. I have an excellent credit score.
My Timeline
April 10 Application submitted
April 13th received $1000
May 2nd I received the we understand letter
May 4th Email stating ready for the next step - create account on Portal. Please verify your identity on the portal
May 6th You are approved email
May 7th I signed loan docs in portal with docusign
May 8th Fully Funded overnight
Keep your heads up - The system is working!
It seems there is no rhyme or reason in the order the applications are being processed. I applied on 3/30, received grant on 4/21, generic email on 5/2 and nothing after that. They are definitely not going first come first served basis.
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
I think I got lucky in that I applied after the system got streamlined
but I wanted to share because I'm not sure many of the people who got funded are posting.
Also, my case may be more simple with no LLC's etc. to verify
Did Anyone receive any progress on their loan application this week?
Yes! I woke up to my loan funded today.
I applied as sole proprietor - with dba - no entity - EIN for my DBA and Social Sec for me (the one employee)
After reading on the forums here I calculated my request based on 6 months gross rents using the previous 12 months
Everything for me was done online with no documents requested. I have an excellent credit score.
My Timeline
April 10 Application submitted
April 13th received $1000
May 2nd I received the we understand letter
May 4th Email stating ready for the next step - create account on Portal. Please verify your identity on the portal
May 6th You are approved email
May 7th I signed loan docs in portal with docusign
May 8th Fully Funded overnight
Keep your heads up - The system is working!
Thanks Holly- when did you request the 6 months gross rent? Was that in the application once you got setup on the portal?
Did Anyone receive any progress on their loan application this week?
Yes! I woke up to my loan funded today.
I applied as sole proprietor - with dba - no entity - EIN for my DBA and Social Sec for me (the one employee)
After reading on the forums here I calculated my request based on 6 months gross rents using the previous 12 months
Everything for me was done online with no documents requested. I have an excellent credit score.
My Timeline
April 10 Application submitted
April 13th received $1000
May 2nd I received the we understand letter
May 4th Email stating ready for the next step - create account on Portal. Please verify your identity on the portal
May 6th You are approved email
May 7th I signed loan docs in portal with docusign
May 8th Fully Funded overnight
Keep your heads up - The system is working!
It's interesting, I signed the loan docs a few days ago but still not funded. I even called to check and they said just hang tight...
How much was your loan for? Mine was around 70k, wondering if the amount is how they are ordering things in addition to the order of submission.
Did Anyone receive any progress on their loan application this week?
Yes! I woke up to my loan funded today.
I applied as sole proprietor - with dba - no entity - EIN for my DBA and Social Sec for me (the one employee)
After reading on the forums here I calculated my request based on 6 months gross rents using the previous 12 months
Everything for me was done online with no documents requested. I have an excellent credit score.
My Timeline
April 10 Application submitted
April 13th received $1000
May 2nd I received the we understand letter
May 4th Email stating ready for the next step - create account on Portal. Please verify your identity on the portal
May 6th You are approved email
May 7th I signed loan docs in portal with docusign
May 8th Fully Funded overnight
Keep your heads up - The system is working!
Thanks Holly- when did you request the 6 months gross rent? Was that in the application once you got setup on the portal?
On the original application
I applied on 3/29 have 0 employees. At the time of application, we anticipated to be impacted. Just a few weeks after, we started get requests for late rent payments. One of the tenants even lost job and wanted to break the lease. We let her loose with 0 penalties and will return her security deposit as well. Good thing is that she left in middle on the month. We already have another lessee lined up. It was unexpected work I had to do to get it rented again. Many hours spent.
SBA Loan Timeline:
Applied on 3/29 (0 Employees)
Experian Credit Inquiry on 4/12
Received on 4/14 from SBA $1000
Received on 5/5 an e-mail from SBA. Loan pre-approval amount. It was One-fifth of what I requested
I accepted the pre-approved amount on 5/6
Received on 5/8 an e-mail from SBA and 2 Phone Calls (1st call was missed) for verifying LLC ownership and share percentage
Received on 5/8 Loan Approval e-mail
E-Signed Loan Document on 5/9 Terms 12 Month No Payments. 30 Years loan at 3.75%. No collateral since it's less than 25K
Waiting for funding now
All along the process I didn't follow up. Sadly, we got approved for 1/5th the loan amount on our application. Luckily, we have personal funds/reserve to cover loss of rents.
Did you have similar experience where approval amount was significantly lower?
Thank you for the details. I applied on 3/31. I have not received anything from them yet. I called them several times. One time I was asked to send additional information that I sent.
I did receive a general email that most of them have received.
I have no employees.
Did Anyone receive any progress on their loan application this week?
Yes! I woke up to my loan funded today.
I applied as sole proprietor - with dba - no entity - EIN for my DBA and Social Sec for me (the one employee)
After reading on the forums here I calculated my request based on 6 months gross rents using the previous 12 months
Everything for me was done online with no documents requested. I have an excellent credit score.
My Timeline
April 10 Application submitted
April 13th received $1000
May 2nd I received the we understand letter
May 4th Email stating ready for the next step - create account on Portal. Please verify your identity on the portal
May 6th You are approved email
May 7th I signed loan docs in portal with docusign
May 8th Fully Funded overnight
Keep your heads up - The system is working!
Thanks Holly- when did you request the 6 months gross rent? Was that in the application once you got setup on the portal?
It was on the original application. The only thing I had to do once they invited me to setup the portal was verify identity.
I was just invited to set up my portal yesterday morning. Shows I am approved/eligible.
I didn't receive the $1,000 advance and applied around 3/31. No other correspondence prior to the approval email
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
I think I got lucky in that I applied after the system got streamlined
but I wanted to share because I'm not sure many of the people who got funded are posting.
Also, my case may be more simple with no LLC's etc. to verify
Also the same situation as Holly but sole proprietor, no LLC applied I believe the first week of April or maybe the end of March, have received nothing but an email "We know, understand, etc, etc...." FRUSTRATING.
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
I think I got lucky in that I applied after the system got streamlined
but I wanted to share because I'm not sure many of the people who got funded are posting.
Also, my case may be more simple with no LLC's etc. to verify
Also the same situation as Holly but sole proprietor, no LLC applied I believe the first week of April or maybe the end of March, have received nothing but an email "We know, understand, etc, etc...." FRUSTRATING.
Holly, how did they calculate the amount for the loan? Unfortunately I put my losses from the virus up to that point, I guess I should have put my projected losses for the year? A small loan will not help that much I need a big loan to cover all my properties.
CHECK THIS OUT HOPE THIS HELPS https://youtu.be/CjCFwTQJrQA
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
I think I got lucky in that I applied after the system got streamlined
but I wanted to share because I'm not sure many of the people who got funded are posting.
Also, my case may be more simple with no LLC's etc. to verify
Also the same situation as Holly but sole proprietor, no LLC applied I believe the first week of April or maybe the end of March, have received nothing but an email "We know, understand, etc, etc...." FRUSTRATING.
Holly, how did they calculate the amount for the loan? Unfortunately I put my losses from the virus up to that point, I guess I should have put my projected losses for the year? A small loan will not help that much I need a big loan to cover all my properties.
Hi Roy,
I watched a podcast here in which they talked about taking your gross rents for the previous 12 months (not last year) and divided in half to get approx 6 months losses. This lined up exactly with what was asked for in the application. Phase one you can request up to 6 months. Normally -regular disasters- borrowers will have the opportunities to show ask for an increase, with supporting documents.
A lot of the state FAQ's have expanded information and they all seem to have just a little different information. Here is a link to West Virginia's for example. It specifically mentions Lost Rents (for rental property owners) on page 12 and increasing or decreasing funds on page 18.
https://www.sba.gov/sites/default/files/articles/EIDL_Information_and_Documentation_-_3-30-2020_FINAL_2_pm.pdf
Contact the SBA. They do answer. I haven't found the call center to have a ton of information but they do try. You know they have your application because you received their email. They can make notes as to the amount you are requesting - not sure if they can make changes. They can confirm that your application is complete and check your status.
Best,
Holly
I got my portal email today morning. Application starting number #33003 My timeline
Applied 3/30
Credit pull 4/18
Advance 4/21
Generic email 5/2
Portal email 5/13
Got portal email for all 3 business that i applied. Loan amount varied for all 3 business.
Received my portal email last week then received an email and spoke to a SBA temp agent to correct some errors on my application
@Holly Qu The system is working but is inconsistent. You applied later than most and got funded. Very interesting....
I think I got lucky in that I applied after the system got streamlined
but I wanted to share because I'm not sure many of the people who got funded are posting.
Also, my case may be more simple with no LLC's etc. to verify
Also the same situation as Holly but sole proprietor, no LLC applied I believe the first week of April or maybe the end of March, have received nothing but an email "We know, understand, etc, etc...." FRUSTRATING.
Holly, how did they calculate the amount for the loan? Unfortunately I put my losses from the virus up to that point, I guess I should have put my projected losses for the year? A small loan will not help that much I need a big loan to cover all my properties.
Hi Roy,
I watched a podcast here in which they talked about taking your gross rents for the previous 12 months (not last year) and divided in half to get approx 6 months losses. This lined up exactly with what was asked for in the application. Phase one you can request up to 6 months. Normally -regular disasters- borrowers will have the opportunities to show ask for an increase, with supporting documents.
A lot of the state FAQ's have expanded information and they all seem to have just a little different information. Here is a link to West Virginia's for example. It specifically mentions Lost Rents (for rental property owners) on page 12 and increasing or decreasing funds on page 18.
https://www.sba.gov/sites/default/files/articles/EIDL_Information_and_Documentation_-_3-30-2020_FINAL_2_pm.pdf
Contact the SBA. They do answer. I haven't found the call center to have a ton of information but they do try. You know they have your application because you received their email. They can make notes as to the amount you are requesting - not sure if they can make changes. They can confirm that your application is complete and check your status.
Best,
Holly
Thank you very much for the information Holly, today finally got the link to create my account and disaster, got a very low loan amount, basically about 1/6 of what I believe I should be getting if we go by 6 months of losses, the loan was exactly what I had put for 1 month of losses I believe, now have another fight to try to change this amount, wish me luck!
Has anybody been able to change the loan amount they assigned to you?
I signed the closing docs 3 days ago, woke up this morning and the loan was funded.
I received more than I expected, almost a full year of potential losses.
I received about a full year also. Signed docs 2 days ago. Still waiting on funding .
I received about a full year also. Signed docs 2 days ago. Still waiting on funding .
How long was it between getting the email to create your account and confirm the basic loan terms to getting assigned a loan officer and signing the docs?
@Derek Jones received an email to setup my portal on May 10th and on May 15th just signed the docs through the portal. I never physically spoke to anyone. Very simple process.