Current Events > My small business disaster loan for my Airbnb got declined.

(+) Yeah! (+)

Because of this coronavirus, my Airbnb has been....... well you know, shit. So as soon as the CARES act got passed, I applied for the economic injury disaster loan (EIDL) in the amount of $9,568.80 ($90/day * 30 days in a month * 8 months * 44.3% occupancy rate per month). While the law written allowed for up to $10,000 in advance with no strings attached (with anything above that, you pay back with 0% interest), there were problems disbursing all the money, and the government soon ran out of money.

So instead, the small business administration gave an advance of $1,000/employee filed, up to $10,000, in advance. I got $2,000, since I only have two employees (myself and my wife). Then, after a month of waiting, I got a letter today:

In these unprecedented times, we understand the challenges you are facing. The SBA is making every effort
to support small businesses, which are the backbone of the American economy. Unfortunately, although we
have made every effort to approve your loan request, we are unable to offer you a Economic Injury Disaster
Loan (EIDL) for the reason(s) described below. We are pleased that we were able to give you an EIDL
Advance under this program even though we are unable to make you a loan. We hope the Advance funds
will provide some relief in these difficult circumstances.

Economic injury is not substantiated.

Based on the information you provided in your loan application, we have determined your economic injury
is not substantiated. We made this determination for one of the following two reasons:
1. Your economic injury is less than the amount you received from the EIDL Advance. As a result,
we are unable to substantiate any additional eligibility at this time.
2. The information you submitted does not indicate an economic injury.

What is this bullshit?! Ugh...

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not gonna lie Im okay with this.

edit: actually it depends. Are you renting out a room or are you renting out a property?

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in before the rampant air BNB haters who don't actually have the FULL context

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Zeeak4444 posted...

edit: actually it depends. Are you renting out a room or are you renting out a property?

I am renting out a ~1200sqft house, with 2 bedrooms and 2 bathrooms.

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Time to sell

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IdiotMachine posted...

I am renting out a ~1200sqft house, with 2 bedrooms and 2 bathrooms.

And do you live there and rent out periodically? Or does this property exist for no reason other than to collect airBNB cash?

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Its too bad that your financial investment didnt pan out.

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PatrickMahomes posted...

And do you live there and rent out periodically? Or does this property exist for no reason other than to collect airBNB cash?

It's a property we bought last year in preparation to house my in-laws next year (2021). I figured we could rent it out for like a year or so to help costs to renovate the house, to make it nice for my in-laws to live in. My in-laws need financial help as they retire, and giving them their own place to live will be a huge help on them. We figured this is actually cheaper than paying for their retirement home, as we can at least sell the house in a couple decades when they eventually pass away (vs. throwing money away into a retirement home).

I am fortunate enough that my parents do not need any financial help when they retire though, so... but yea, it'll suck, financially, to support my in-laws' housing and eventual nursing requirements, ourselves, and our kid (eventually; don't have one yet).

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IdiotMachine posted...

It's a property we bought last year in preparation to house my in-laws next year (2021). I figured we could rent it out for like a year or so to help costs to renovate the house, to make it nice for my in-laws to live in. My in-laws need financial help as they retire, and giving them their own place to live will be a huge help on them. We figured this is actually cheaper than paying for their retirement home, as we can at least sell the house in a couple decades when they eventually pass away (vs. throwing money away into a retirement home).

I am fortunate enough that my parents do not need any financial help when they retire though, so... but yea, it'll suck, financially, to support my in-laws' housing and eventual nursing requirements, ourselves, and our kid (eventually; don't have one yet).

ya that changes my stance. I retract my original post then. Sorry about that.

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FursonaNonGrata posted...

Its too bad that your financial investment didnt pan out.

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Imagine pretending your Airbnb would have 100% occupancy for 8 months straight .

Imagine asking for 8 months of pay when you'll list it prior to that

Imagine thinking airbnb is a business.

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I Like Toast posted...

Imagine pretending your Airbnb would have 100% occupancy for 8 months straight .

Imagine asking for 8 months of pay when you'll list it prior to that

Imagine thinking airbnb is a business.

You should read the math equation better.

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EIDL was changed to $1k per employee because of the demand, which was the advance. You're not owned anything else.

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archedsoul posted...

EIDL was changed to $1k per employee because of the demand, which was the advance. You're not owned anything else.

I know, as mentioned in the OP. I wanted the loan.

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IdiotMachine posted...

I know, as mentioned in the OP. I wanted the loan.

Yeah. So for example, if you wanted to let's say get $12k, you'd need 12 employees, $2k of which would be the loan.

You only have 2 employees.


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I Like Toast posted...

Imagine pretending your Airbnb would have 100% occupancy for 8 months straight .

Imagine asking for 8 months of pay when you'll list it prior to that

Imagine thinking airbnb is a business.

My partner and I rent out our ADU for air BNB and even with the pandemic, we haven't been too far from that mark

edit: also, how is it not a business, exactly?

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archedsoul posted...

Yeah. So for example, if you wanted to let's say get $12k, you'd need 12 employees, $2k of which would be the loan.

You only have 2 employees.

I thought the advance was $1000/employee and the loan is separate from that. For example, I asked for $9800, I get $2000 free, and a 0-3% loan for $7800.

Bleh if not.

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IdiotMachine posted...

I am renting out a ~1200sqft house, with 2 bedrooms and 2 bathrooms.

Not safe enough.

Quick crowd everyone into a 2 star hotel with dirty sheets

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Yet fucking Olive Garden and whatever get millions is small biz losns

BeantownHero posted...

how is it not a business, exactly?

It's part of the anti-landlord movement from people who don't like paying rent. TC's situation is different, but the movement is moreso targeted at those who buy up houses for the sole purpose of airBNBing them. Technically TC is doing that, but he's doing it for his parents later on so it's not really the same.


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Id rather the money go to an actual small business and not an Air BnB owner. You can get government assistance and mortgage forgiveness or some shit to help pay for that

If you make income it's a business...that's why you gotta claim AirBnB on taxes. Durrr.

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I wouldnt call that a small business....

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