SBA Loans for US Hosts

[Lee447]

In Brian's talk this week, he mentioned that Airbnb has "worked together to secure support for hosts in the US Government’s recent COVID-19 Stimulus Bill. This legislation now allows for US hosts to take advantage of many relief measures, including small business grants, small business loans, and unemployment assistance." 

I have not incorporated my Airbnb, but I am curious if we can apply as sole proprietors? Now that the application is out I am wondering if anyone is pursuing this path or has more information. 

@Lizzie is Airbnb planning on sharing any more resources about this process?

[Robert1868]

There is an option in the application for sole proprietors. It would be nice if Airbnb would provide some more basic guidance as to how to fill out this application. They provided a like to SBA, but they don't give you any clues where to go on the SBA website.

[Daniel-and-Mario0]

I have been looking and nothing, when you go to sba, EIDL loan seem like we have to force our information and in business detail is not STR.

[Nina69]

Airbnb has given ZERO guidance. I replied to the generic letter with the link and got a reply "go to the help page" what a joke there is nothing there and there's nothing on the SBA website about rental income. I applied for the loan, not knowing what else to do. Can I apply for the Payroll protection as well to pay myself and my housekeeper? What about unemployment? Do you have to pick one thing or should you apply for everything? At this point, with no answers from Airbnb I will apply for everything, reasoning that I'll be turned down for what I'm not eligible for.

[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?

[Brook-and-Justin0]

I really wish Airbnb would give us some guidance on how to proceed with the SBA loans/grants.  When it comes to "cost of goods sold," I don't know how to proceed.  Does this pertain to the losses we've incurred due to guest cancellations?  Does cost of goods sold have anything to do with a vacation rental?  

Help!

[Michelle53]

@Brook-and-Justin0  

 Cost of Goods Sold is anything which relates directly to the booking itself.  In other words, any costs you incur for preparing the rental for a booking. 

Mortgage, utilities, and other items generally paid by the month instead of per booking would generally be considered overhead, not cost of goods.

If a property manager is paid monthly, it would be overhead. If a cleaning service is paid per booking, it is cost of goods sold. 

[Lee447]

I just saw that Airbnb posted more information, which is helpful: https://www.airbnb.com/resources/hosting-homes/a/federal-covid-19-economic-relief-resources-for-us-h...

I am working with my bank to fill out the application. Please keep us all updated if you apply

[Timothy289]

Has anyone applied for the Economic Injury Disaster Loan? If so did you apply as a hotel or what else did you put in as Business Activity??

[Troy52]

I applied for and recieved an EIDL.  I put AirBnB as the business activity.

[Karen-and-Mike1]

@Lee447 

I have a lot of the same questions others have mentioned--maybe your bank has been able to help clarify some things?? Would love to glean some insights, if you have any thoughts on the following:

1) My husband and I have 2 small units on our own property where we live.  Are we sole proprietors or independent contractors as an AirBNB host?  Or is "other" more appropriate if we consider ourselves landlords?

2) How does one calculate lost rents due to disaster?  I had a full-price, nearly full calendar for all of March, April, May, which rapidly deteriorated to become a 1/2 full, half-price calendar.  Can I just calculate the difference between what I made last year for these months and what I am making this year? 

Thoughts?  Educated guesses?  Thanks!

3) @Brook-and-Justin0 @Heather1051  Cost of Goods Sold--I would think of this as anything that you would normally declare on when you file taxes for your resale license, if you have one, ie, NOT consumables that you provide or cost of doing business (laundry, utilities, etc), but rather inventory you keep for the sake of reselling.

Thank you to all and I hope each of you is doing well in this bizarre moment in history!

[Adam-and-Ike-0]

COGS for us (hosts) is $0... per my convo with an SBA rep right now

[Caroline1599]

Why and how is this? I am trying to work on a Profit and Loss Statement for the PPP loan. COGS is also known as direct costs for services provided and it seems like every business, including an airbnb would have direct costs

[Adam-and-Ike-0]

Also, per SBA rep.... for Business Activity, select: "Miscellaneous Services" or "Hotels & Lodging" ... Then underneath for Detailed Business Activity you can select: "None of the below"

They said that you aren't going to get denied for choosing either and when it comes time for a loan officer to go through the details, they will at the time.

[Lee447]

This is so helpful, thanks @Adam-and-Ike-0 

Which bank are you using? I have personal accounts with BofA and First Republic but neither is accepting applications unless I have an existing business accountt