SBA Emergency Loan for Coronavirus-Impacted Businesses

Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6y
In our case, I am hoping that we have put back adequate cash reserves to weather the storm.
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Anand S.
OP
Plantation, FL · Member since 2009 · 329 posts · 119 votes
6y
I've got reserves but who knows how long and how deep this impact goes.
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
Has not impacted my STRs one bit and I don’t expect it to. People will stop freaking out sooner than later.

*buys toilet paper
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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6y
I think it was Warren Buffett who once said, "you don't know who has their swim trunks on until the tide goes out." I sure hope I've still got my swim trunks!
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
Originally posted by @Collin Hays:
I think it was Warren Buffett who once said, "you don't know who has their swim trunks on until the tide goes out." I sure hope I've still got my swim trunks!

Do you own anything? Or just manage for other people?

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6y
Originally posted by @Luke Carl:
Originally posted by @Collin Hays:
I think it was Warren Buffett who once said, "you don't know who has their swim trunks on until the tide goes out." I sure hope I've still got my swim trunks!

Do you own anything? Or just manage for other people?

I own 4 vacation homes and manage about 30 others. Many of our clients are retired and have invested in STRs for income. I think that point also can get lost in the discussion of who "deserves" a break, fairness, etc.
Would it be "fair" for me to ask a bond holder to forgive my debt since I am having such a hard time? What if they are dependent upon that income?

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
I have had several recent bookings for March and April and it is quickly filling up no different than any other year.
I don't think a SBA loan would apply here. Also it is a loan that has to be paid back.
If your business doesn't have some cash reserves then I would take a hard look at your "business" .
1 Reply
John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
Originally posted by @Collin Hays:
I think it was Warren Buffett who once said, "you don't know who has their swim trunks on until the tide goes out." I sure hope I've still got my swim trunks!

We hope you have your swim trunks on as well!

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
Originally posted by @Luke Carl:
Has not impacted my STRs one bit and I don’t expect it to. People will stop freaking out sooner than later.

*buys toilet paper

I just got the big pack of TP at Sam's club before the panic hit. So I'm set.
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David H.
Rental Property Investor · Portland, ME · Member since 2019 · 160 posts · 231 votes
6y
@John Underwood
Hi John,
As an SBA professional I can say that there is still much uncertainty as to how these funds will be allocated.
Traditionally, SBA loans are not eligible for passive rental businesses.
(They are however available for hotels and self storage, loops holes!)
As far as I’ve seen, no SBA lenders lend on AirBNBs, though, I may be wrong, because each institution interprets the rules differently until they are reprimanded and told otherwise.
In regards to the current situation at hand, it appears as though the government has already started bending the rules of the program. We have been told that loans will be eligible for non-profits, which are historically not allowed. This leads me to believe the rules may be bent further.
It definitely wouldn’t hurt to try, as I feel there will be very loose standards and oversight as this is rolled out.
Also, if you are in the hotel or self storage business, look into your options for loan deferment, as it stands the SBA is allowing lenders to defer up to 6 months of payments for eligible businesses. Qualifying what is eligible however is guesswork at this time.
Good luck!
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Anand S.
OP
Plantation, FL · Member since 2009 · 329 posts · 119 votes
6y
Short term rentals are definitely not a passive rental business.
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Anand S.
OP
Plantation, FL · Member since 2009 · 329 posts · 119 votes
6y
FYI -- Florida is providing a survey to assess the impact CV19 is having on local businesses. If you are experiencing significant economic damage due to the CV19 (cancellations, non-bookings), I suggest you complete the survey so they can take appropriate relief action.

https://www.flgov.com/2020/03/12/governor-ron-desantis-activates-emergency-business-damage-assessment-survey-for-coronavirus-covid-19/
The Business Damage Assessment Survey can be taken online at

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