Investor · atlanta · Member since 2018 · 41 posts · 15 votes
Hi All,
Will most likely be approved for 13k EIDL for my residential real estate rental small business 2 member LLC. Does anyone know what expenses are forgivable and in what timeline they need to be incurred? I have been trying to get a hold of SBA customer service but no luck. I have lost rental income since the pandemic started and still have to make mortgage and insurance payments. Any info you have will be greatly appreciated.
I have searched this forum but coudnt find relevant info.
I think only the initial grant (usually 1k) is forgivable, the rest of an EIDL is not forgivable. You may be thinking of the PPP loans which do have some kind of forgivableness.
Hi Vidit, hope you have been getting the answers you were looking for. We applied for 3 things and got all 3...1) An EIDL grant I'd heard of that was basically $1,000 per employee. 2) PPP loan, which is for employers only who keep their employees on the books. There is a forgiveness application that I'm still waiting to turn in to make it a grant. We haven't made any payments on it. And 3) EIDL which is a loan we had applied for years ago that finally came through and it's very low interest rate and first payment not due for a year. That was a whopper for us! There is one more thing SBA is offering called a bridge loan. This may be what you are looking for. Assuming you already have a business checking account somewhere, that would be the portal to apply for this. It's for up to $25,000 in funds to bridge the gap in income due to the pandemic. The money comes quicker while you're waiting for decisions on the bigger loans. Here's a link...hope it helps!
From what I've read and heard, the forgiveness is only possible for the PPP loan, and even then only the portion that you did not also receive in EIDL. Of course, all those windows are now closed as far as applying for the loans. The good news is that you won't have to make any payments right away and it will roll into a low interest 30-year mortgage. The PPP loan was only for those with W-2 employees. Hope this helps. Did you get the EIDL?
Thanks, Sandy. I applied for the loan a while back and it was approved. I havent signed the closing documents as I fear I may not be in a position to pay back. SBA has been following up and are still open to disbursing the amount to me. I am wondering if I will be able to get a part of it forgiven. I am speaking with them again today.
@Vidit Maini I suggest take the cash. The interest rate is very low, so the worst that can happen is you decide you don't really need the money after all and you can pay it all back. You can even take several months to decide what you want to do.
@Sandy Sawyer the rate they are offering is 3.75 PA. Verbally they have confirmed that there is no pre-payment penalty. However, I am slightly worried about having a 30 year loan and interest payments. My plan would be to pay back the entire loan as soon as I can. At the bare min, i will be paying 11months of interest.
I am hoping they offer some forgiveness options for the EIDL loan. Let me know if you have any more info on this or if you have any experience with SBA loans. thanks!
I haven't seen anything about forgiveness on the EIDL, only the PPP, which is reduced by the amount of your EIDL. So if you want 100% forgiveness, you'll want to consider that as well. I just got off the phone with Chase Bank PPP team advisor, said they won't be accepting form 3508S (which is for PPP loan forgiveness of under $50,000) until mid January.