Is my small business (guest house Airbnb rental) eligible for CARE funds
April 2, 2020 9:48 AM   Subscribe

We are wondering whether our small business (small guest suite that we primarily rent on airbnb) could be eligible for some of the small business CARE funds. I'd like to pay someone to consult with them about whether we could be eligible and (ideally) get some help applying. What is the title of this type of specialist (and do you have any recommendations)? I'm in CA if it matters.

We depend on the rental income to pay our mortgage, have three years of documented (and reported on our taxes) rental income of about 25k, and have taken on several costly projects this year to repair damage to the guest suite. We usually have guests 7 nights a week, and right now have cancellations and no bookings until September.
posted by arnicae to Law & Government (8 answers total) 1 user marked this as a favorite
 
You can contact your local Small Business Association, they are handling the grants and loan programs. I haven't found any info specifically about landlords losing rental income other than applying for mortgage forbearance. Have you called your bank / lender yet? Also ask your accountant about loss of rental income as a tax deduction.
posted by ananci at 10:24 AM on April 2, 2020


Airbnb hosts can get small business loans through federal relief bill, by Leticia Miranda, NBC News (March 25):
Airbnb hosts will be eligible to receive small business loans and unemployment insurance through the coronavirus relief bill. ...

The bill, as it is currently written, requires eligible borrowers to show that they need the loan because of the uncertainty of the economic crisis caused by the virus. The loan can only be used to maintain payroll, leases and utility payments.
The website VRM Intel goes into a lot more detail, reporting that "the most impactful aid for vacation rental managers is a section within the CARES Act: the Paycheck Protection Program." The article goes on to say:
The Paycheck Protection Program (PPP), formed under the CARES act, is a $349 billion program that provides small businesses with cash-flow assistance through 100-percent federally-guaranteed loans. The best part . . . all or part of the loan may be forgiven.

Businesses can borrow money for payroll, health care benefits, employee compensation, mortgage interest, rent, utilities, and interest on debt. ...
Understanding Aid Available Through the Paycheck Protection Program for Vacation Rental Managers, by Brooke Pfautz, VRM Intel (March 29)
posted by virago at 10:35 AM on April 2, 2020


Call the loan officer at the bank you use. They're handling the small business loans/grants directly, with no government office in between. The grant money has already gone to the states; the states are finishing up the process for getting it to the individual banks. You'll deal with your own banker, so contact them ASAP.
posted by summerstorm at 12:40 PM on April 2, 2020


If you have guests seven nights a week, I'd encourage you to consider shifting, at least temporarily, to a longer term rental, probably at a discounted rate. Even if you have less total income, you'll have more than you would otherwise. It'll also mean possibly lower health risk; if you return to short term bookings sooner rather than later, you are welcoming so many more people into your home.
posted by bluedaisy at 1:45 PM on April 2, 2020 [3 favorites]


I found a NOLA article that may be useful!
posted by ananci at 2:35 PM on April 2, 2020


Seconding bluedaisy. Keep in mind that depending on where you are, there are Peace Corps workers, and Foreign Service folks, and others who had to evacuate back to the States quickly and without their stuff. A number are looking for longer term furnished rentals, and some are using Airbnb.
posted by gudrun at 4:47 PM on April 2, 2020


Response by poster: Hi, I've cut our prices by 60% and offered additional discounts for long term bookings. Still nothing.
posted by arnicae at 5:26 PM on April 2, 2020


Are you listing it on AirBnB, though? I’d try the regular rental places like Craigslist and sharing with your friends.
posted by bluedaisy at 10:59 PM on April 2, 2020


« Older Apple Cloud Recipe Needed (from FSM @ UCB)   |   VMs For Social Good Newer »
This thread is closed to new comments.