Attn: SBA Disaster Loans for Landlords

Attn: SBA Disaster Loans for Landlords

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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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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  • Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
    6y
    Originally posted by @Bob B.:

    @David

    @David H. All of the webinars are sold out.  Are there other cities doing this?  Atlanta isn't 


    They should be doing it all over the country at this point. In an early post, may of be a different SBA EIDL thread, I shared the phone number contact dial in number for the New Hampshire district office. I've had good luck getting in every day there.

  • Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
    6y
    Originally posted by @Joe Carter:

    @David Hulit good morning I’m trying to navigate the site myself to see where I sign up. I am a sole single person with a duplex. My tenant that was just infected actually left with owing me $10,000 in rent. He’s an illegal and trying to chase it down has been an issue. With the SBA loan be something I could try to obtain. From the post I’ve read I can get a 25,000 unsecured and a $10,000 loan as well not having to be paid back? 

    I'm so sorry to hear about your circumstance. I can't say for certain, but I would check the https://covid19relief.sba.gov/... and try and fill it out as accurately and honestly as you can. Its worth a shot. They did say rental property owners are eligible, so in my opinion you should be allowed to qualify. Though I can't be for certain, because it looks like they want to see sole props, llcs, or something to that effect.

  • Real Estate Broker · Watertown, NY · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @David H. -  I just noticed they have a new website for this. 

    https://covid19relief.sba.gov/#/

    I had used the previous website where you drag your docs into upload box on the page.  I never received any emails that the application was received though.  Should I go to this new website and resubmit?

  • Rental Property Investor · Salvo, NC · Member since 2018 · 13 posts · 8 votes
    6y
    Hey Michael, I applied on the new website and did not receive an email saying my application was received, so I am guessing neither site sends an email.  The streamlined site app was much faster so I am wondering did I need to do the original site to upload the docs as well? Streamlined one seems too easy ...
  • Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
    6y

    @Michael Ablan

    Hi Michael,

    The guidance I heard was that you can submit a request through the new SBA site for the advance grant even if you’ve already submitted an application.

    I would highly suggest requesting the advance grant at this time.

    I can’t say for having to resubmit everything else, but definitely apply for the grant through that link.

    Best of luck!

  • Investor · Madison, WI · Member since 2015 · 128 posts · 33 votes
    6y

    Hello everyone, if anybody has 2 cents on my situation I would greatly appreciate it.

    -3 duplexes - all are in mine and the wifes name. We live in one unit out of the 6. All hold mortgages with the same bank. 

    -All properties are 75% LTV or better

    -1 flip currently at a stand still - roughly 70% complete 

    -HERES THE BIG ONE - Closing on an 8 unit apartment building this Friday April 3. We initially wanted to back out of the deal because of COVID but decided to follow through. Same bank as other loans. Putting 20% down. 
      There is one vacant unit and the other 7 are month to month leases. And the worst part is that it’s located in a tourism town, where 90% of the tenants work in industries that are shut down. 

    The 8 unit is our largest purchase and it’s happening at the absolute worst time. If anybody has some advice or direction, it would be greatly appreciated!! 

    -Not sure if it matters but 2019 taxes have not been filed yet. 
    -Located in Wisconsin 


    THANKS

  • Investor · Madison, WI · Member since 2015 · 128 posts · 33 votes
    6y

    @David H. you seem most knowledgeable and I forgot to tag you. Please see above post. 

    Thanks

  • Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
    6y

    @Robert Obniski

    Hi Robert,

    Sorry to hear about your troubles.

    I would suggest exploring the SBA EIDL loan/grant for lost rents/projected lost rents due to this disaster.

    I can’t say for certain as everyone’s situation is unique and the government will be underwriting these loans, however it should hurt to try.

    If you seek the EIDL loan I would search google for an online webinar by the SBA. A few links have already been posted in this thread. There should be webinars in all 50 states by now.

  • Real Estate Investor · La Fayette, NY · Member since 2017 · 110 posts · 27 votes
    6y

    So on that new webpage for "COVID-19 ECONOMIC INJURY DISASTER LOAN APPLICATION"  ELIGIBILTY ENTITY VERIFICATION looks like you have to be sole proprietorship  for a landlord.  I only report my rental income on SCHEDULE E - that rental income comes from two properties I rent to companies for their workers needing tempt housing and get 1099's from it.  


    "

  • Broomfield, CO · Member since 2012 · 47 posts · 43 votes
    6y

    Did someone mention that the grant application is now live?

    Is the grant the streamlined application?

    Thank you!


  • Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
    6y

    @Scott L.

    Yes the grant application is live and it is streamlined

    The link should be available in a few posts above

  • Denham Springs, LA · Member since 2015 · 133 posts · 35 votes
    6y

    @David H. I just wanted to thank you for all the time you spent answering these questions, It is greatly appreciated.

  • Jeff WhiteBusiness Member
    Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
    6y

    @David H. I'm currently going through a refinance for one of my properties, should I wait till I'm done with it before pursuing this SBA grant/loan. I don't want to affect my refinance. Just wondering if they do a pull on your credit report for this grant/loan?  

  • Broomfield, CO · Member since 2012 · 47 posts · 43 votes
    6y

    Thank you David!

  • Denham Springs, LA · Member since 2015 · 133 posts · 35 votes
    6y

    I had applied to SBA last week and took 3 hours. I wanted to apply to the grant also but sba login is down, so I did the streamlined version, applied for the grant and it took 10 minutes.

  • Investor · Laurel, MS · Member since 2011 · 3 posts · 1 vote
    6y

    @Chad C.

    Where is grant application

  • Denham Springs, LA · Member since 2015 · 133 posts · 35 votes
    6y
  • Investor · Miami, FL · Member since 2013 · 807 posts · 475 votes
    6y

    @David Hulit

    Can non US citizens apply?

  • Rental Property Investor · Albany, NY · Member since 2019 · 47 posts · 16 votes
    6y

    Is this separate than the Covid Emergency Loan. That one interests me because the loan is forgiven and covers mortgage interest, utilities, and payment to independent contractors. 

  • Rental Property Investor · Albany, NY · Member since 2019 · 47 posts · 16 votes
    6y
  • Real Estate Investor · Waukesha, WI · Member since 2011 · 5 posts · 3 votes
    6y

    Two questions:

    1. I mistakenly selected 1 employee for my single member LLC; is there a way to edit the application once it's submitted?

    2. Can an LLC in my self directed IRA that owns real estate apply for the Emergency EIDL Grant?

  • Rental Property Investor · Playa Del Rey, CA · Member since 2015 · 16 posts · 3 votes
    6y

    Can you apply multiple times for different LLC's owning different properties? Different bank accounts and all... but my name and info is on every application?

  • Investor · Oak Park, MI · Member since 2014 · 299 posts · 47 votes
    6y

    Hello,

    Just came into this thread, I have 6 Airbnbs, all hard hit by corona. I'm finishing my taxes as we speak (2017, 2018 yes very late!) so I can apply for a cash out on a house I just rehabbed, really need to pull the money so I can survive but as luck will have it the corona hit, seems the refi might get more complicated because of the taxes and the current situation. What are my options for this program? Is it possible to get a loan with my house as collateral? If so up to how much do they lend?

    Thank you very much in advance!

  • Investor · Laurel, MS · Member since 2011 · 3 posts · 1 vote
    6y

    @Chad C. Thanks I appreciate it. I just filled it out.

  • Real Estate Broker · Atlanta, GA · Member since 2017 · 229 posts · 145 votes
    6y

    How are you all estimating "Rental Properties (Residential and Commercial) Only - Lost Rents Due to the Disaster"?  I won't really know until after rent is late in about a week.  

    Also, I have 2 refinance transactions going on right now.  If I apply and SBA does an inquiry against my credit, won't that raise red flags with my refi bank and potentially cause issues?  

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