SBA Economic Injury Disaster Loan Emergency Advance: Need help with the form

[Heather1051]

The SBA disaster relief loan advance seems to include loss of rental income.

My question is, there's a line for "cost of goods sold" (which, if my research is correct, also means cost of services). Does this mean the cost of the rent or mortgage paid and/or the cost of the property manager/house keeper?

[Tookie0]

I would sure ask your tax accountant to be sure, but by definition, Cost of Good Sold is materials that go into a product that you produce to sell. In Real Estate, (and property management) we do not have Cost of Goods sold. Again, ask your accountant but in my opinion, the things you mentioned are not COGS. But there is also a line that asks about rents lost. I am going back through my emails to see how much I lost since ABB has zeroed out the totals on cancelled reservations.

[Adam-and-Ike-0]

COGS is $0 for hosts, per an SBA rep I spoke with yesterday.

[Rae-And-Stephen0]

I found an SBA handout on  the program (which I was unable to locate now when Googling) that said for service industries, cost of goods sold would be replaced by cost of service, essentially the operating expenses. It said the maximum loan amount is intended to be 6 months of expenses to the extent they cannot be covered due to coronavirus. So I think you do need some COGS otherwise there aren't any expenses for the loan to go towards. But the lack of guidance the SBA has on their site is mind-boggling.

[Michelle53]

Cost of Goods is NOT general operating expenses. It is the direct cost of delivering the service. 

Example:  In a construction project, the Cost of Goods would be any materials purchased (e.g. flooring, roofing, tiles)  or labor  (roofers, tilers, carpenters) used for that project.    

In a hosting situation, Cost of Goods (or Cost of Services) are items related directly to the booking itself. e.g. cleaning services,   airbnb service fees,  laundry for that booking,  etc. 

Any of a host's indirect expenses, such as monthly rent, utilities, etc are not Cost of Goods/Service. 

[Tim670]

Has anyone been able to secure funding from the SBA?

[Evelyn38]

I secured a small PPP loan from the bank, but am hesitant to finish the documents. An online accountant said that AirBnB income was passive income and not eligible. I have AirBnB in my home and am the sole proprietor, I have lost all income from February, March, April, May and so on.

For many of the questions on the application, I put Not Applicable.