Attn: SBA Disaster Loans for Landlords

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Attn: SBA Disaster Loans for Landlords

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

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 💥

- 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!

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Most Popular Reply

Mike H.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
6y

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....... :-)

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  • Bob M.
    Investor · Saint Louis, MO · Member since 2014 · 37 posts · 14 votes
    6y

    Finally got the email to create password and sign into the portal today, however it will not log in with multiple attempts and just keeps spinning and timing out.   I wonder if their server is down right now.  Anyone else having this issue today?

    0Reply
  • Bob M.
    Investor · Saint Louis, MO · Member since 2014 · 37 posts · 14 votes
    6y
    Originally posted by @Joyce Williams:

    @Kouakou Kossonou..... see image attached. I requested an increase via the “Need help? Send request now” on the approval page and yes I did accept the offer.

    Joyce I had to do the same thing yesterday as the loan amount quoted was only $1000.   I explained to them that I had input the cost of goods sold wrong (I used 12 months total expenses but it should have been $0 I realize now) and lost rents wrong on the original application.  I’m hoping this is the reason they quoted so low.  How long did it take for you to hear back or get a loan increase after you did this?

    0Reply
  • Kouakou Kossonou
    Member since 2019 · 5 posts · 1 vote
    6y

    @Joyce Williams

    Thanks for your quick reply. I did accept the offered amount today and requested an increase using the link

    “Need help? Send request now”. I was also offered a small amount because my application was based on 1 property.

    did you follow up with the SBA on the status of your increase request?

    I hope they will consider how request.

    Thanks and be safe.


    0Reply
  • TJ Jeff
    Investor · Austin, TX · Member since 2016 · 39 posts · 12 votes
    6y

    Maybe I missed it, as I assess whether to take all or part of the loan offered to me I didn't see the offer period. Has anyone gotten a decision timeline for deciding to either take/adjust, or pass on the loan? 

    0Reply
  • Joyce Williams
    Rental Property Investor · NY · Member since 2020 · 118 posts · 54 votes
    6y

    @Bob M...... I haven’t heard back and I didn’t get the loan increase. They just sent me what they offered.

    0Reply
  • Clifford C Toth
    Member since 2019 · 16 posts · 3 votes
    6y

    I wonder why some are still getting loans approved when my April 1st applications on all five LLCs were denied as only agricultural loans are available due to lack of funds in SBA.

    0Reply
  • Joyce Williams
    Rental Property Investor · NY · Member since 2020 · 118 posts · 54 votes
    6y

    @Clifford C Toth.......I have no idea but I applied on 3/31. I’m wondering if anyone who submitted an application after 3/31 got approved.

    0Reply
  • Derrick Dill
    Investor · Hawaiian Gardens, CA · Member since 2015 · 308 posts · 386 votes
    6y

    ^I applied 04/01, got approved already

    I got approved for 15k (w/6 properties MFR,SFR), I filled out the "need help form" and copied the part of the contract that states you can request for increased loan amount. No one answered the "need help?", so I called them, got a person on the phone. I told her the contract stipulates specifically that I can request an increase and read the verbiage for her.. She looked something up and said EIDL is not taking any increase in loan amounts at this time due to shortage of funds, that I should keep an eye out if they add more funds to the program.

    I'd like to know if anyone else had a different experience because I filled out the form, called, and that was the answer I received

    0Reply
  • Gordon Starr
    Rental Property Investor · Dayton, OH · Member since 2015 · 312 posts · 273 votes
    6y

    I thought collateral was required only over 200k, so I was told. I confirmed my loan amount at 29. Now I see the terms, i regret not dropping below 25. I haven't signed, but requested an adjustment to 24.9. If they won't do that then I am probably gonna quit the program. Cant stomach those terms.. the one I hate most says they can buy my assets for any price they like.

    1Reply
  • Jeffrey Allen
    Real Estate Investor · Southern, IN · Member since 2015 · 34 posts · 8 votes
    6y

    Finally got my email to establish an account and confirm identity this afternoon.  Site was very slow this evening, so I'm guessing I wasn't the only one.  $12,900 for me.  

    0Reply
  • Donna Pattani
    Rental Property Investor · Austin, TX · Member since 2015 · 27 posts · 7 votes
    6y
    Originally posted by @Gordon Starr:

    I thought collateral was required only over 200k, so I was told. I confirmed my loan amount at 29. Now I see the terms, i regret not dropping below 25. I haven't signed, but requested an adjustment to 24.9.

     I did the same thing when I found out a ucc will be filed for over 25k, waiting to hear back whether they will lower it, if not, I think I'll pass.

    1Reply
  • Edward Liu
    Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
    6y

    As long as you don't default or do things illegally, terms related to SBA's powers to buy the asset does not apply.  Worst case is we pay off the total loan and nothing SBA can do further.   If your business does run into trouble and default on this loan, it is possible for government to forgive this loan also (according to some experts in my wife's company)

    Personally I believe this program is intended to help people, not to screw and cheat us.   We are such small fish in government's eyes (especially if loan is less than $200k), it's not worth it for government to chase after us.  Think about how many small loans are out there - tens of millions, while SBA only has around 3500 employees.   For comparison, IRS has around 75000 employees and when was the last time you received audit notice?   

    I applied through each of my LLCs - all same info with difference in damage amount.   Only 1 (the one requested most loan amount) is officially approved while most are rejected, a few more still review in progress.  

    0Reply
  • Roy Gutierrez
    Investor · Oak Park, MI · Member since 2014 · 299 posts · 47 votes
    6y
    Originally posted by @Bob M.:
    Originally posted by @Joyce Williams:

    @Kouakou Kossonou..... see image attached. I requested an increase via the “Need help? Send request now” on the approval page and yes I did accept the offer.

    Joyce I had to do the same thing yesterday as the loan amount quoted was only $1000.   I explained to them that I had input the cost of goods sold wrong (I used 12 months total expenses but it should have been $0 I realize now) and lost rents wrong on the original application.  I’m hoping this is the reason they quoted so low.  How long did it take for you to hear back or get a loan increase after you did this?

    @Joyce William, @Kouakou Kossonou

    Still nothing, if you call reps they will tell you that there's no way to increase the amount, seems to be running into a wall, so then stupid me saw the link on the website to send a message, did that 2 days ago and no response, I still don't want to accept because I'm under the impression that if you accept that's it you can't change the amount.

    Has anyone been successful in someone looking at the account again?
     

    0Reply
  • Joyce Williams
    Rental Property Investor · NY · Member since 2020 · 118 posts · 54 votes
    6y

     @Roy Gutierrez......that’s why I just took the small amount. If they contact me that would be great but I’m not banking on it.

    0Reply
  • Michael Masters
    Rental Property Investor · Westport, CT · Member since 2017 · 176 posts · 183 votes
    6y
    Originally posted by @Derrick Dill:

    ^I applied 04/01, got approved already

    I got approved for 15k (w/6 properties MFR,SFR), I filled out the "need help form" and copied the part of the contract that states you can request for increased loan amount. No one answered the "need help?", so I called them, got a person on the phone. I told her the contract stipulates specifically that I can request an increase and read the verbiage for her.. She looked something up and said EIDL is not taking any increase in loan amounts at this time due to shortage of funds, that I should keep an eye out if they add more funds to the program.

    I'd like to know if anyone else had a different experience because I filled out the form, called, and that was the answer I received

     I did the same exact thing, asking for more via "need help" and called them.  I got the same response, no more increases right now as funds are short.

    0Reply
  • Michael Masters
    Rental Property Investor · Westport, CT · Member since 2017 · 176 posts · 183 votes
    6y
    Originally posted by @Edward Liu:

    I applied through each of my LLCs - all same info with difference in damage amount.   Only 1 (the one requested most loan amount) is officially approved while most are rejected, a few more still review in progress.  

    I had heard only 1 loan per person even if you own multiple LLCs.  Not sure if that is true but that could be the reason.

    1Reply
  • Kouakou Kossonou
    Member since 2019 · 5 posts · 1 vote
    6y

    @Joyce William, @Kouakou Kossonou, 

    @    Roy Gutierrez

    Roy, go-ahead and accept the offer and get the money that they offered to you, you have submitted an increase for the request, so get the money and wait for them to respond on that request later. 

    I requested an increase and called them many times to tell them to increase my offer, at that time I did not accept the offer thinking they would just increase it and then I would accept it but you know what they did? they changed the status of my account to decline like I declined the offer. I called them and told them I never declined the offer. an hour or two after the call they corrected my status and soon they did it, I accepted the offer (LOL). I know that's not much but take it while it is there and wait for their feedback for the increase.

    the contract says that you can ask for an increase within the two years following the approval.

    So Roy, please get the money, and let's update each other on this forum on the status of our request.

    Thanks, guys.




    1Reply
  • Edward Liu
    Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
    6y

    I received my loan 3 days after signed the contract.   It also comes with $1000 grant as separate deposit.  Not sure if you decline the loan, you still get $1000 grant.

    0Reply
  • Omar Sundrani
    Rental Property Investor · Lewisville, TX · Member since 2012 · 3 posts · 0 votes
    6y
    Originally posted by @Edward Liu:

    I received my loan 3 days after signed the contract.   It also comes with $1000 grant as separate deposit.  Not sure if you decline the loan, you still get $1000 grant.

    They provided you the grant + the loan after you accepted the terms? 

    0Reply
  • Edward Liu
    Palo Alto, CA · Member since 2017 · 230 posts · 200 votes
    6y

    Yes - in 2 separate deposits. One for loan amount (minus $100 fee), 2nd for the $1k grant as my LLC is single owner with no employees. I am not sure if you reject the loan, do you still get the grant, thus the post.

    0Reply
  • Joyce Williams
    Rental Property Investor · NY · Member since 2020 · 118 posts · 54 votes
    6y

    Same with me. I received two payments, the grant for $1000 and the loan amount. 

    0Reply
  • Sharon Rosendahl
    Investor · Quilcene, WA · Member since 2017 · 230 posts · 169 votes
    6y

    Strange. I got the advance a few weeks ago but still no loan offer. I didn't sign anything so I don't think they will ask for it back.

    0Reply
  • Clifford C Toth
    Member since 2019 · 16 posts · 3 votes
    6y

    I applied 3/31/20 and all five LLC were denied due to no funds left. Two received a grant of $1,000 each. This will not keep me afloat. Not looking forward to what's next.

    0Reply
  • Sharon Rosendahl
    Investor · Quilcene, WA · Member since 2017 · 230 posts · 169 votes
    6y

    Applied 4/2. Just got Portal email for full amount (9 months lost rent). 

    0Reply
  • Bob Kane
    Member since 2020 · 3 posts · 0 votes
    6y

    Looks like I may be late in applying. I have 4 rental properties, each under separate LLC
    5/25 tried to apply for grant but looks like they are only accepting agricultural businesses? Anyone has tried recently?
    Also would like to apply for <25k Lon for each LLC projecting rent loss or forgiveness, is any portion of that <25k forgivable by the government? 

    0Reply
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