SBA Loan program for Corona Virus
Here's the first post, admittedly written quickly:
- SBA guaranteed
- Renters or owners can request loans
- For people who are affected by C19 virus and consequent economic disruption:
- Needs a standardized and easy loan process;
RENTERS:
people bring in their credit rating, proof of rental payments, notice of layoffs or decreased income from job.
- Funding would be for 3 months to 6 months, with possible extensions TBD and evidence of ongoing effect
OWNERS:
- documentation = rent rolls and evidence of people who need to leave due to C19 issues
- effect on ability to pay mortgage, other expenses or essential income
- possibly a credit line to fund rent deferrals: this could be offered to current tenants or possibly to prospective tenants who are otherwise good credit risks.
- perhaps owner would assume 5 to 10% of the risk which is better than the cost of having empty unit and also helps out the tenants.
INVESTORS:
- if owners did not want to do this for their renters, there might be a way for private investors to fund rent deferrals and possibly get a good return, such as 8 to 10%, while assuming some small risk. They could apply directly to the SBA or through a local bank.
It's a quick and dirty write up, but if we don't tell the Feds what is needed, we're not likely to get it. Please help work up this proposal which could also go to state governments.