Disaster SBA loan for Short Term Rental losses?

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I have had over $12,000 in losses from cancellations where airbnb broke short-term rental contract terms and conditions (strict policy 1 week before check-in, 50% before). The guests should have been offered travel insurance, like homeaway does, but instead airbnb made the hosts bear 100% of the burden of this pandemic and its impact on rentals. Lawsuits are pending.

Has anyone successfully used a Disaster SBA loan and does it apply to only to LLCs or can apply if your taxes show on Schedule C or E? 

Any guidance is much appreciated! 


I know quite a few people that are applying but haven't heard of anyone being approved or what they received.

Does it make sense? If you borrow $15,000 at 4%, it will cost you $1,700 in interest and five years to pay back.

I'm not trying to bash you, but you shouldn't have to borrow money after just a few weeks of losses. This is a good time to evaluate how you operate. Every investor should have a reserve set aside to handle vacancies, major repairs/renovations, and other disasters. Failing to prepare exposes you to risk and increases the chances of you losing everything.

Should have had enough reserves. Also, a good reminder that while STR's roll in the bank during good times, they are ultra risky for downturns. May be wise to get your inventory back into the market ensuring people have decent housing options...

Is the pandemic over yet lol? I see people second guessing concerns over cash shortfalls in month one of the pandemic, maybe they knew which way it would go. I did not, so that represents risk that I want to mitigate, which I did. I think it is funny when people caution others as being unprepared when they are in the process of reacting and responding when things shift swiftly. Does sitting on several hundred thousand in reserves help protect a portfolio. Yes, but only if markets don't tank simultaneously, and you will have to resign your self to limited returns on that cash.

Remember that when doing a pro-forma for investing, banks conservatively calculate 30% vacancy. Even with short-term rentals were hedged with long-term, having 100% vacancies for multiple doors of anyone's portfolio may strap anyone's cash reserves quickly, except those sitting on uninvested millions in retirement accounts and 0 debt. Lucky you. I would say that's probably not the majority on this forum. Anyone going after BRRRR strategy and sitting on debt and suddenly not getting paid will have similar issues, and some are.

I wish everyone the foresight and wherewithal to withstand the storm in case they are struggling. While we all have different appetites for level of leverage, we all will have at least some modest trouble even if it is just lower ROI when our cash flow properties do not consistently cash flow. I did not notice many tips on the original question, so I will answer here.

The answer to my original question is (was): yes, but probably only if you created an LLC to receive your income, and had a bank account that showed the monthly income as of Feb 2020, and your bank was willing and able to take your app. The PPP is now closed for apps. I think those with Schedule E reporting had (have) a harder time of it.

Many on this forum ask if an LLC is useful or if they should keep everything in their name with umbrella liability insurance. For me, an LLC collecting my rents has been useful in showing the income in case you need a loan now or in the future.

Hopefully, everyone survives the storm. I wish all the best of luck, planning, resourcefulness, and fortitude!