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SBA Grant Program for Landlords [How to Apply]

The Small Business Administration (SBA) provides financial assistance to small businesses affected by disasters and emergencies, including the COVID-19 pandemic. Landlords, as small business owners, may be eligible for the SBA’s Economic Injury Disaster Loan (EIDL) program, which provides low-interest loans to help cover operating expenses during times of crisis.

Available SBA Grant Program for Landlords

  1. The SBA’s Economic Injury Disaster Loan (EIDL) Program

The SBA’s Economic Injury Disaster Loan (EIDL) program is a valuable resource for landlords who have been impacted by the pandemic, providing financial support to help them weather the storm. The program provides loans of up to $2 million, with terms of up to 30 years, and an interest rate of 3.75% for small businesses and 2.75% for nonprofits.

In addition, eligible small businesses may also receive a grant of up to $10,000 to help cover expenses such as payroll, rent, utilities, and other business-related costs.

Requirements (Eligibility) 

To be eligible for the EIDL program, landlords must meet the following criteria:

  • Business entity: Landlords must be operating as a sole proprietorship, partnership, corporation, or cooperative.
  • Size: The business must have fewer than 500 employees.
  • Physical location: The business must have a physical location in the declared disaster area.
  • Financial hardship: The business must have suffered substantial economic injury as a result of the disaster or emergency and be unable to pay its obligations and bills.
  • Credit history: The applicant must have a credit history that demonstrates the ability to repay the loan.
  • Other funding: The business must not be able to obtain sufficient credit elsewhere to recover from the disaster or emergency.

It is important to note that the SBA may also consider other factors when evaluating an application for an EIDL, such as the applicant’s character, experience, and ability to repay the loan.

How to Apply 

To apply for the SBA’s Economic Injury Disaster Loan (EIDL) program, landlords must complete an application through the SBA’s website.

The application process requires landlords to provide information about their business, including their average monthly payroll expenses, the number of employees they have, and the impact of the pandemic on their business. Financial information and tax returns must also be provided to support the application.

Once the application has been approved, landlords will receive their loan funds in the form of a direct payment. The funds can be used to cover a wide range of business-related expenses, including rent, utilities, payroll, and other operating costs. It is important for landlords to use the funds wisely, as the loan must be repaid over the course of 30 years.

2. The Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) is a financial assistance program offered by the Small Business Administration (SBA) in response to the COVID-19 pandemic. The program provides forgivable loans to cover payroll and other eligible expenses, helping landlords to keep their businesses afloat during these challenging times.

Landlords should carefully evaluate their options and consider all available financial assistance programs to ensure they have the support they need to weather the impact of the pandemic and emerge on the other side in a strong and viable position.

The amount of the loan is based on the average monthly payroll expenses of the business, up to a maximum of $10 million. The loan may be fully forgiven if the business uses the funds for eligible expenses and meets certain conditions, such as retaining or rehiring employees and maintaining payroll levels.

Requirements (Eligibility) 

To be eligible for the PPP, landlords must meet the following criteria:

  • Business entity: Landlords must be operating as a sole proprietorship, partnership, corporation, or cooperative.
  • Size: The business must have fewer than 500 employees.
  • Physical location: The business must have a physical location in the United States.
  • Payroll costs: At least 60% of the loan must be used for payroll costs, including salaries, wages, tips, and benefits.
  • Use of funds: The loan must be used for eligible expenses, including payroll costs, rent, mortgage interest, and utilities.
How to Apply

To apply for the PPP, landlords must complete an application through a participating lender, such as a bank or credit union. The application requires information about the business, including average monthly payroll expenses, the number of employees, and the impact of the COVID-19 pandemic on the business.

In conclusion,

If you are a landlord who has been impacted by the COVID-19 pandemic, it is important to explore all the financial assistance options available to you, including the EIDL program and the PPP. With the right financial support, you can continue to support yourself and your business during these challenging times.