Ideas that Help you Succeed
Blog (noun) blawg
: a collection of experiences, observations and opinions to help the vacation rental industry
: a collection of experiences, observations and opinions to help the vacation rental industry
Michelle Marquis, Chief Revenue Officer of Lexicon Travel Technologies Joel Inman, Co-Founder & CEO of Lexicon Travel Technologies Brooke Pfautz, Founder & CEO of Vintory Brooke Pfautz, Founder & CEO of Vintory, has taken the time to learn the ins and outs of the aid packages available to vacation rental companies and shared his take on what to do. Below you will find information on the two main aid packages available: the Economic Injury Disaster Loan Program (EIDL), the Paycheck Protection Program (PPP), and additional aid packages that your company or owners might be able to apply for. Disclaimer: New modifications are being added to these bills daily. It is recommended to reach out to your attorney or accountant for help in applying to these programs. Economic Injury Disaster Program (EIDL)
With this program, loans can be approved up to $2 million and do not have to be used for just payroll – they can be used for funding multiple business operations. Additional $10k grants are available as well but are hard to receive currently. Loan Details:
Criteria to be Approved:
Proving Economic Injury: For example, your company can show previous years revenue vs. current sales. You can also look at potential loss of revenue. Cancellations can be a sign of economic injury. Use of Funds:
Collateral Requirements:
The EIDL loan has an extremely low interest rate and can be used for multiple business operations, although a credit check is required. Association-ran rental programs do not qualify for EIDL and it looks as though individual owners cannot qualify for the loan either. Joel Inman stated, “They are being very, very lenient on the qualifications to apply. I would encourage everyone just to apply and let them tell you if you don’t qualify.” You can apply for EIDL directly with SBA at covidrelief.sba.gov. Paycheck Protection Program (PPP) The PPP loan can be used for payroll, healthcare benefits, etc. but it is more geared towards payroll. Just like the EIDL, the interest rate is extremely low. Loan Details:
Criteria to be Approved:
Use of Funds:
Collateral Requirements:
Loss of Forgiveness:
The PPP loan is a forgivable loan that is meant more for payroll, though it can be used for additional approved expenses. If you do not provide proof that you used the loan for approved expenses, then it will not be forgivable. “It does not hurt to go through multiple banks if you have the accessibility”, said Inman. You can apply for this loan with SBA Lenders at: https://www.sba.gov/paycheckprotection/find. Online FiTech Co’s Processing is another source used for this loan, as well as: Divvy, Kabbage, Cross River, Lendio, and Intuit. Each of these companies has a different qualification process that might work for your company’s specific situation and needs. If you have a banking relationship, start there. Small community banks can process the loan quicker. Other Programs Available Vacation rental companies might not qualify for these programs, but they can be offered to owners as additional resources. State Programs There are programs available for each specific state – talk to your accountant to see if your company can qualify. Airbnb Aid
Airbnb Superhost Aid
Airbnb Superhost Aid
Goldman Sachs
Companies can apply for both the EIDL and PPP loans. “My understanding is as long as the funds are used for distinct things and very different uses, you can apply for both,” stated Brooke Pfautz. If you have the accessibility, it does not hurt to go through multiple banks to apply. You can apply, but you do not have to take the loan any bank offers. Just make sure to set up separate accounts and track everything, especially for forgivable loans. Don’t wait – apply for these loans as soon as possible. Comments are closed.
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4/16/2020