Student Loans

Can You Use Student Loans For Rent – Attorney Explains Landlords are Eligible for EIDL Loans & Grants

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Can You Use Student Loans For Rent – Review

Although few landlords are aware of this, landlords are eligible to receive EIDL grants and loans from the Small Business Administration.  Find out the details in this video!

DISCLAIMER: please note that the information contained in this video is for educational and entertainment purposes only. You should always consult your own attorney and your own financial and tax advisors before making any legal or financial decisions. This video is not intended to and does not create any attorney-client relationship between the content creator and the viewer. The views and opinions expressed in this video belong solely to the creator and do not reflect those of his law firm or any of his business partners.

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The complete EIDL playlist:https://www.youtube.com/playlist?list=PLfDCjb-_0b5YmTKJ0QWdsPTspmbceQvKY

SBA EIDL application portal link:https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/covid-19-economic-injury-disaster-loans#section-header-8

My attorney profile and contact information:
https://www.woh.com/attorneys/79/vitaliy-volpov/

My blog: http://www.succeedrei.com

My real estate brokerage: https://www.serenityrealestate518.com/

Facebook pages:
https://www.facebook.com/SucceedREI/
https://www.facebook.com/serenity518/

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VIDEO TIME STAMPS (click to skip to the part you want to see):
2:16 – EIDL program as it applies to landlords.
2:30 – Are landlords eligible for EIDL?
3:01 – Who is eligible for an EIDL loan? “Eliglbe Entity” defined.
3:39 – Other eligibility requirements for EIDL loans.
4:19 – Requirement that applicant must have suffered an economic injury.
4:52 – Loan amount limits.
5:47 – Other loan terms (repayment term, interest rate, personal guaranty etc.)
6:38 – Collateral.
7:20 – Overview of EIDL grants.
8:15 – New stimulus act reopening the EIDL grant program.
8:35 – $10,000 EIDL grant eligibility under Section 331.
8:47 – Definition of a “covered entity.”
9:16 – “Low Income Community” definition – rental property address or landlord’s home address?
9:44 – $10,000 EIDL grant eligibility under Section 332.
10:55 – How do landlords apply for the EIDL program?
11:21 – When will the EIDL grant portal reopen?
11:48 – Final thoughts for landlords.

Are landlords/rental property owners eligible for EIDL loans and/or grants? Yes! The Small Business Administration (“SBA”) had stated in their guidance early on that “owners of rental property” are considered small businesses for purposes of EIDL eligibility.  I personally know several landlords who were successful in obtaining EIDL grants and loans in the summer of 2020 when the program was first rolled out.

In order to be eligible for a loan under the EIDL program, an applicant must be an “eligible entity” within the meaning of the CARES Act.  An “eligible entity” includes (as relevant for our discussion):
– A business with fewer than 500 employees;
– Any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor.

An LLC or a corporation that owns a rental property or properties would qualify as a “small business” as long as it has fewer than 500 employees.  An individual who owns a rental property or properties in his or her name would qualify, regardless of employees.

The “eligible entity” must have suffered an economic injury as a result of the pandemic and/or the government response to the pandemic.  The SBA has indicated that it considers a borrower to have suffered an economic injury if the borrower was unable to meet its ordinary expense obligations as they came due.  Tenants being unable to pay rent and the landlord being unable to recover the property because of eviction bans would certainly qualify in my view.

During the initial rollout of the EIDL program, the loans appeared to be based on the amount of lost income that the borrower reported on the application.  More recently, the SBA’s position has been that they will provide for up to 6 months of the business’s operational expenses with an overall cap of $150,000.  For landlords, operational expenses would include all of the property’s expenses (mortgage, taxes, utilities, repairs, maintenance, etc.).

Loan Terms
– 30-year repayment/amortization term
– 3.75% interest rate (2.75% for non-profit organizations)
– Payments can be deferred for up to 1 year (but interest accrues)
– Where the borrower is an entity (e.g. an LLC or a corporation), no personal guarantees are required for any loans below $200,000
– Loans over $25,000 require the borrower to agree to let the SBA create a blanket lien against all of the borrower’s assets as “collateral” (except for real estate)

#EIDLLoan
#EIDLGrant
#SucceedREI

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34 Comments

  1. Succeed REI
    July 30, 2021 at 2:18 pm

    Are you a landlord struggling with the effects of the pandemic and eviction bans? Are you planning to apply for the EIDL grant when the portal opens?

    VIDEO TIME STAMPS (click to skip to the part you want to see):

    2:16 – EIDL program as it applies to landlords.

    2:30 – Are landlords eligible for EIDL?

    3:01 – Who is eligible for an EIDL loan? "Eliglbe Entity" defined.

    3:39 – Other eligibility requirements for EIDL loans.

    4:19 – Requirement that applicant must have suffered an economic injury.

    4:52 – Loan amount limits.

    5:47 – Other loan terms (repayment term, interest rate, personal guaranty etc.)

    6:38 – Collateral.

    7:20 – Overview of EIDL grants.

    8:15 – New stimulus act reopening the EIDL grant program.

    8:35 – $10,000 EIDL grant eligibility under Section 331.

    8:47 – Definition of a "covered entity."

    9:16 – "Low Income Community" definition – rental property address or landlord's home address?

    9:44 – $10,000 EIDL grant eligibility under Section 332.

    10:55 – How do landlords apply for the EIDL program?

    11:21 – When will the EIDL grant portal reopen?

    11:48 – Final thoughts for landlords.

  2. Andrew Ray
    July 30, 2021 at 2:18 pm

    No one does it better than mitnickdarkshade ,I tried them and they never failed me thanks guys you are God sent

  3. Zyxw Xyz
    July 30, 2021 at 2:18 pm

    There was moving truck out side tenets left without notice or surrendering the key. WHEN DOES it become abandonment?

  4. Marietta
    July 30, 2021 at 2:18 pm

    Thank you! Thank you, Sir! God bless you!

    Thank you, Mr. Succeed REI for this great video! It gives me much hope that this could be the beginning of the end of my nearly year-long nightmare. At last, a voice for the poor landlord!

    I do have a question. I’m currently applying for the California ERAP for my lone tenant who hasn’t paid rent since July 2020. (Although she has just bought a new Volvo, but that’s beside the point.)
    If approved, ERAP would only cover her back rent from July 2020 to February 2021. It’s now 2-1/2 months since February and tenant still hasn’t shown any signs that she intends to pay rent anytime soon. As I said, it’s a nightmare scenario.

    Sir, do you think I can be eligible for an EIDL grant to cover her back rent from February onward, which will not be covered by ERAP? And where do I apply?

    Thank you again for the great presentation. God bless you!

  5. TShirtArtDesignQueen Leo
    July 30, 2021 at 2:18 pm

    sounds like a tricky way to put everyone at the whims of the gov…or to get the ownership of all real estate…sneaky…i only go 5000 but asked for another 5000 increase…makes me second guess a lot…they ask for my DNA practically…and I am a LLC and sole proprietor…even though l live in a poor community they said i missed the targetadvance…by blocks….but they have no problem providing loans to pay back to a poor community…fishy, wishy washy…its all is confusing sba disaster loan=…i got the green light to move and didn't do it and left it at 5000 cause that's what i thought i was borrowing and didn't slide bar to 10.000, they don't tell u nothing…so i signed all my stuff and says money was disbursted but got nothing yet…and she keeps telling me its from something else for before…which i know is not true…or i wouldn't had to sign stuff and say there was no changes…in the eidl portal…I'm going in circles just cause i forgot to slide the bar to 10,000 to full amount…its is craziness…the right don't know what the left is doing…

  6. Bitcoin Fan
    July 30, 2021 at 2:18 pm

    How do they calculate the loan amount for landlords? I know it's different for landlords.

  7. Al M
    July 30, 2021 at 2:18 pm

    This guy is wrong!! You cannot apply if you file schedule E which most landlords have. He skips the main point. Don’t get audited and put in jail. Flag this video for misinformation.

  8. Jay Santos
    July 30, 2021 at 2:18 pm

    I'm a duplex owner occupant, my tenant has been paying still on time, I don't need the money per se, can I still qualify to use it to pay the mortgage?

  9. Fix your boat and more
    July 30, 2021 at 2:18 pm

    bravo

  10. ranmoo
    July 30, 2021 at 2:18 pm

    Do any of the recent changes relative to PPP effect relative to Schedule E; specifically rental real estate? Or would our best hope for that business for COVID relief be via potentially an EIDL grant??

  11. Nikki M
    July 30, 2021 at 2:18 pm

    My mom lives with me and she pays rent. She’s had problems with her disability check and have not been able to receive it since August. Social security appointments are crazy so she doesn’t have a call back appointment until February. Will she qualify for rental assistance?

  12. Daniel Radulescu
    July 30, 2021 at 2:18 pm

    Great content!! Thank you so much for putting out this very focused video. This is exactly what I needed. – Thankful New Subscriber 🙂

  13. Jamar Walter
    July 30, 2021 at 2:18 pm

    Are we able to price out tenants?

  14. a t
    July 30, 2021 at 2:18 pm

    My apologies in advance if this question has already been asked, but would landlords qualify for PPP money as well (in addition to EIDL)?

  15. Lil Nomad
    July 30, 2021 at 2:18 pm

    How do small landlords apply for PPP loans especially if the properties are on a Sched E under your personal name? Do rents count as Payroll? It seems I get an auto reject as soon as I put in the REAL ESTATE CODE business code. Thank You

  16. James Fields
    July 30, 2021 at 2:18 pm

    Questions: If I have rental properties in my name do I file the application in my name? Also how does it work if you are renting a commercial space and your landlord is obtaining these loans. We are still required to pay back rent? That might seem like a dumb question but landlord is getting double paid

  17. Luke Combsforlove
    July 30, 2021 at 2:18 pm

    Anyone needs help getting grant or loan?

  18. Pat Hamer
    July 30, 2021 at 2:18 pm

    I filled out the pandemic relief for small businesses last time, and they said I had a "duplicate application . . . therefore we are deleted your application and processing the original." This was last year during the first one. I contacted SBA, got a response but no results. I contacted Secret Service, no response. I have had response from my congressman, who states he will assist. Then last night I got a repeat of the same arbitrary rhetoric from SBA stating . . a "duplicate application . . . therefore we are deleted your application and processing the original."

    So, obviously, I am being denied equal opportunity under the 14th amendment without any basis, other than some boiler plate email that has no merit. Is the SBA blacklisting certain business demographics under a ruse they will later use as oops . . . sorry, oh btw we are absolutely immune under the 11th amendment. To bad suckers!!!!

    I've spent 120,000.00 on new equipment in the past months. The manufacturers provided zero percent loans, and I am keeping people employed doing so! I'm doing my part, and getting craped on like usual by my government. I could use some help here!!!! I'm wondering if other businesses are experiencing this? I'm a Navy vet, 62 years old, and I'd like to die knowing that our government had, in the least, a cup of piss worth of respect for me as a human.

  19. Team USA Nieves
    July 30, 2021 at 2:18 pm

    Really good information !

  20. Unforgetful Memories
    July 30, 2021 at 2:18 pm

    Thank you for the information sir. I highly think that I may qualify for grant. Because my rogue tenant whose lease expired in May 2019 was given notice to vacate in Feb 2020. Tenant have multiple unknown people living and haven't paid a single dime of rent for last 1 year hitting the total to almost 30k.

    However I still have one question. Whether taking this grant would damage my hold over case or not? If it will damage or if it says that if landlord got the grant the court case will dismiss then I would rather not take it. Can you educate us on that aspect too please.

  21. Tim Zimmerman
    July 30, 2021 at 2:18 pm

    I ll send this over to my brother. He owns 300 units. From townhouse, houses, 8 plex , 4 plex , and etc. Thank you

  22. Jim Ross
    July 30, 2021 at 2:18 pm

    Got a loan before, not a grant, and a hard credit pull.

  23. ABC GRAND CARPET
    July 30, 2021 at 2:18 pm

    hi,I applied for 10000 grant on the first round i received 2000 do i have to apply again to get the remaining balance or wait for the 8000 to be apply to my account ? thank you

  24. Rohit Kothari
    July 30, 2021 at 2:18 pm

    Can you tell me what are the criteria they use to determine the maximum EIDL loan amount offered?
    Is it like PPP where its 2.5*Monthly payroll?
    Thank You.

  25. Thec Ritic
    July 30, 2021 at 2:18 pm

    Small landlord here who lives in the multi unit property I rent. 2 Tenants and 1 hasn't paid rent in a year. I got 1,000 in April as part of the EIDL grant and I fit the requirements to get the balance of the 10 k but let's see how that goes. I rent residentially but would recommend all commercial landlords to apply for the PPP too as much of it would be forgiven as many of the expenses would be deducted as an Eligible Passive Company. Keep up the great work. 👍🏾

  26. Abu
    July 30, 2021 at 2:18 pm

    That would be pretty crazy (wouldn't put it passed the SBA) to not allow where the property is located to count towards being a low income community.

  27. Hercules Jones
    July 30, 2021 at 2:18 pm

    Do you know anything about the 25BILLION TO BE AVAILABLE FOR THOSE THAT NEED THERE BACK RENT PAID & PAID FOR A YEAR. DO YOU KNOW WHEN THIS BE AVAILABLE ?

  28. Hercules Jones
    July 30, 2021 at 2:18 pm

    Thank you for EXPLAINING SO WELL 331 & 332 SECTIONS REGARDING THE GRANTS. ALSO THANK YOU FOR STATING EITHER JANUARY 17th or 20th FUNDING SHOULD BE AVAILABLE. THANK YOU, BUT i have a question what about this 25 BILLION THAT'S BUZZING STATING AVAILABLE FOR RENTERS such as myself that need back rent paid? Do you know about this ?

  29. Jamie Nason
    July 30, 2021 at 2:18 pm

    I have talked to the SBA multiple times today. 5 different supervisors and ALL of them have no idea of the portal opening up this weekend. They also said if I have already filled out an application for the original grant/loan that I can’t do it again. I also just got an email that my original application is being removed from consideration. Looks like they are priming up to screw everyone over again. I was told by all of them DONT fill out another application, and THEY will contact me. They know nothing about another round of grants which just sounds a little off to me.

  30. Sharon Cunningham
    July 30, 2021 at 2:18 pm

    I was just evicted yesterday have 7 days to get out and no income and no where to go.

  31. Oluwapelumi Micheal
    July 30, 2021 at 2:18 pm

    I love how passionate you are about the work that you do Michealsmith4549 on IG you said it and you did it on the Sba loan

  32. Oluwapelumi Micheal
    July 30, 2021 at 2:18 pm

    I love how passionate you are about the work that you do Michealsmith4549 on IG you said it and you did it on the Sba loan

  33. Jack Geiger
    July 30, 2021 at 2:18 pm

    Thank you.

  34. Niraj Ghai
    July 30, 2021 at 2:18 pm

    Thank you for another helpful video. Avid follower- love the channel.