UPDATE Tuesday, April 14:  This was just released by the SBA. It appears that EIDL grants WILL NOT be provided to small businesses (like vacation home rentals) that do not have any employees.

Dear Applicant, On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000. You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:                                  Paycheck Protection Program                  Full EIDL Loan PURPOSE Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable) To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven) TERMS Up to $10 million 1% interest rate Up to $2 million 3.75% for businesses 2.75% for non-profits FORGIVABLE YES NO – EIDL Loan YES – EIDL Advance MATURITY 2 years 30 years FIRST PAYMENT DUE Deferred 6 months Deferred 1 year To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection. Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA’s resource partners.

If you rent your Holden Beach home you may be eligible to benefit from the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act COVID-19 Economic Injury Disaster Loan (EIDL) and a $10,000 Emergency Grant for lost rental income.  Note: everyone’s situation is different and this should not be taken as financial or legal advice.  We only wanted to make sure our members were aware of this potential opportunity!

The Coronavirus Aid, Relief, and Economic Security (CARES) Act which was passed on 3/27/2020 establishes an emergency grant to allow an eligible entity who has applied for an EIDL loan due to COVID-19 to request an advance on that loan, of not more than $10,000, which the SBA must distribute within 3 days. It also states that applicants shall not be required to repay advance payments, even if subsequently denied for an EIDL loan.   The State of Virginia SBA has a good explanation of the program including a recorded webinar.  Also, the Small Business Association has information about the program and you can apply online.

An HBPOA Board Member sent the following:

I just submitted the application for our house. As I understand the way this works, you submit an application for an EIDL loan AND request a $10,000 grant as an advance. That application took me less than 15 minutes to complete on-line. You give them your bank routing + account number for direct deposit. When submitted, they give you a Registration Number.  You are supposed to get the $10,000 within 3 business days, but it is the government. Subsequently, the SBA will contact you by email for more info if you want an additional loan. The $10,000 is not subject to repayment regardless of whether or not you are approved for an additional loan.

It appears funds can be used for vacation rental properties including mortgage interest and utilities.  Be aware that there is a finite amount of money and it will be given out on a first-come-first-serve basis.  We also recommend double-checking with your accountant and hope s/he is following the issue closely.  Click below for sample completed forms you can use to complete an EIDL application from the SBA online site.

EIDL App Page1

EIDL App Page2

EIDL App Page3

EIDL App Page4

EIDL App Page5

The Confirmation after completing looks like this: