All Forum Posts by: Cory Binsfield

@Kelly Murphy Cost of goods sold would be your operating expenses. Since the SBA will call you to review your situation later, you can ask for more details on this when you chat with 'em. The key is to simply apply.  

@David Falkoff

In the webinar slide deck I attended for the EIDL loan, they indicated you cannot use this loan for "speculative real estate purposes." It never hurts to apply, but you should ask how they define this. Here is a link they gave us for all 237 pages of a disaster loan program SBA SOP 50 30

@Kelly Murphy

I attended the online Minnesota SBA webinar yesterday. They told me to apply for a loan for each business entity. I would submit the 2nd application and attend one of the webinars to learn about the program in detail. It's a fluid situation and they kept saying to apply if you are not sure if you qualify since the worst that can happen is you get turned down. 

AS a result of the webinar, I decided to submit 2 more applications since I have 3 businesses. 

I would shop for a small regional bank or credit union in the area. Find out if they are lending on small multi-family. I would also ask them if they could use your current appraisal. If the appraiser is on their approved list, the lender could use it but you would have to pay another fee. I have done this before and normally the appraiser re-packages the appraisal and charges you 1/2 or less of the fee you already paid. 

As others have mentioned, your only option may be a Fannie/Freddie conventional loan. Right now, many of the non-traditional mortgage lenders are getting hammered due to the Fed buying up mortgages and creating margin calls on their portfolios.  

It's 2008/2009 all over again. Non-traditional lending will continue to tighten or disappear completely as the pandemic plays out. 

Yes. My other business is an investment advisory biz with 2 employees. I used the PPP for this due to payroll since I’m not laying off anyone. 

Yes, on the EIDL loan. The PPP loan does not have that option.  

Here is the 2nd page

Here's another update on my loan progress. 

I just completed a PPP (Paycheck Protection Program) application with one of my bankers. This loan is for my investment advisory business and will reimburse the financial hit I'm taking as my revenue is tied to the stock market. 

In '08-'09 my investment business revenue dropped 50% since I am a fee-based advisory. I'm bracing for the same impact. However, this looks promising since they did not offer this program nor the EIDL loan back then. It just goes to show that we have more resources available now than back then. 

If all goes as planned, I should have 2.5 months of payroll forgiven per my banker. 

On the EIDL loan front, I have contacted all my business owner and real estate clients and told them to apply for BOTH loans if they can.   

Heads up to all the people that asked, I did not receive an e-mail from the SBA confirming submission. I saved the document with the confirm number. Let’s see what happens. 

If you owe the bank $100,000, it's your problem. If you owe the bank a few million, it's the banks' problem. 

I know a guy who was mortgaged up to his eyeballs on his primary during the financial crisis. He ended up living in his house for 2 1/2 years while the bank paid his mortgage, taxes, and insurance. Once the crisis ended, he ended up with a loan modification for a better rate and term. 

All I'm saying is a free and clear house is not as great as Dave makes it sound. Instead of avoiding debt, be like your bank by leveraging the spread between the cost of funds and how much you can earn on your income property.