Date: Tue, Apr 14, 2020 at 11:15 AM
Subject: Update on Economic Injury Disaster Loan Advance
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.
The Confirmation after completing looks like this: