# SBA EIDL Loan Cheese



## RobLinn (Aug 10, 2019)

Went through the EIDL Loan increase process & as was approved & Funded

Starting to think the SBA & congress is INSANE for putting these types of Loan programs out there for rideshare drivers

Since the SBA changed the rules for the loan (They went from 6 months of lost income to 24 months) some drivers (like me) are being approved for loans well over $100,000

While I did take my full Loan amount with this increase ($112K) I will likely not use it & repay when the deferment ends (In 2022)

gonna be interesting to see the default numbers on these loans after the repayment kicks in

Rideshare drivers are not the most stable or dependable small business owners 🤣

Ive been working all the programs & with the Free cheese I’m around $90K for sitting on my ass for 17 months (through August 21) with a cash reserve of $112K (the EIDL Loan)

Some of us made out like bandits as the Big businesses do all the time 😉


----------



## Seamus (Jun 21, 2018)

And since the "business owner" had to sign a personal guarantee for the loan, when the loan re-payment period begins we will start to see the "SBA unfairly filed a lien against my house" posts. 😂


----------



## RobLinn (Aug 10, 2019)

Seamus said:


> And since the "business owner" had to sign a personal guarantee for the loan, when the loan re-payment period begins we will start to see the "SBA unfairly filed a lien against my house" posts. 😂


Maybe a few

I don’t think the drivers who own a house will be the ones defaulting

I think most of those defaults will be involved in Chapter 7 cases

It’s not as if Drivers have actual assets

That is gonna be the failure in these EIDL loans for self employed

Gonna be interesting


----------



## GIGorJOB (Feb 29, 2020)

If I'm not mistaken, the crazy thing is they were waiving a personal guarantee for a time with loans under $200k. Loans under $25k were considered "unsecured" and the rest required UCC lien filings.

Not sure what the story is now, how much this has changed or if this varies on a case by case basis, etc. Still, wouldn't be surprised to learn there is language or authority that gives them some kind of ability/protections nonetheless.

Not much of a traditional business aspect to delivery and rideshare, so it's shocking someone could secure a loan of that size with this type of work. Lots of restrictive language in that loan agreement last I checked too, it's suggested that it's really only supposed to be used to say afloat, "working capital". IMO, one needs to be careful how these funds are appropriated.

Lots of questions and things to consider around these loans too, for example is it safe to assume one's car is their main business assets for these purposes? What if someone wanted to get a new car, could use these funds or not, and would they likely need approval before disposing of the old one either way?

What happens if all the apps deactivate someone, do you have to report that, if you are driving or delivering with at least one app is that enough, can you use the loan proceeds to pay yourself if deactivated, can they call the loan and demand repayment in full in those kind of situations, or are you good as long as you keep paying regardless of employment?

That's the issue between being a traditional business "owner" and being an independent contractor IMO, at least when it comes to this kind of program but if one can get it and stay within the rules.


----------



## UberBastid (Oct 1, 2016)

RobLinn said:


> Maybe a few
> 
> That is gonna be the failure in these EIDL loans for self employed
> 
> Gonna be interesting


Yup, if you call the complete meltdown of an economy 'interesting'.
Kind of like that old Chinese curse: "May you have an interesting life."

Our kids and grandkids are gonna be really, really pissed at us.


----------



## lala2016 (Aug 14, 2016)

RobLinn said:


> Went through the EIDL Loan increase process & as was approved & Funded
> 
> Starting to think the SBA & congress is INSANE for putting these types of Loan programs out there for rideshare drivers
> 
> ...


Was that money deposited in a business or personal account? And if so what bank please?


----------



## Jimmy44 (Jan 12, 2020)

I got 1000 grant and 1000 loan with the first round during the Cares act.
I applied the 2nd round and have not heard from them.
112 thousand for an Uber/Lyft driver WOW!
That's amazing !!


----------



## 132266 (Dec 1, 2017)

RobLinn said:


> Went through the EIDL Loan increase process & as was approved & Funded
> 
> Starting to think the SBA & congress is INSANE for putting these types of Loan programs out there for rideshare drivers
> 
> ...



What documents did you need for loan over 25,000? I was approved for 198,000


----------



## BestInDaWest (Apr 8, 2021)

i honestly dont get all these posts . people bragging about mooching off the system. taking from ligitimate needs of others . ever hear of inflation you f&*%^$g jerk? as far as i am concerned all those people who come here with their arrogant and smug bragging are nothing but losers. you have no backbone or morality. i hope you all get prosecuted to the fullest extent of the law....


----------



## Taxi2Uber (Jul 21, 2017)

BestInDaWest said:


> i honestly dont get all these posts . people bragging about mooching off the system.


I'm sure you'll be able to explain how someone paying back a loan is considered a "mooch".


----------



## Daisey77 (Jan 13, 2016)

BestInDaWest said:


> i honestly dont get all these posts . people bragging about mooching off the system. taking from ligitimate needs of others . ever hear of inflation you f&*%^$g jerk? as far as i am concerned all those people who come here with their arrogant and smug bragging are nothing but losers. you have no backbone or morality. i hope you all get prosecuted to the fullest extent of the law....


How are they mooching when they're responsible for paying it all back? It's all legal and legit 🤷‍♀️

Now go hurry up and apply. Maybe you'll be less miserable in life


----------



## InIt4TheLongHaul (May 18, 2020)

RobLinn said:


> Went through the EIDL Loan increase process & as was approved & Funded
> 
> Starting to think the SBA & congress is INSANE for putting these types of Loan programs out there for rideshare drivers
> 
> ...


It is a nice cushion, but you do realize that even if you don't use any of the $112K, once the deferment period ends (18 months out), you owe that $112K PLUS all accrued interest between now and then, right? On a $112K loan, you're looking at an extra $6K you'd have to pony up just paying the whole thing back at the end of the 18 month deferment. If that works for you, great, but I think too many people are thinking the deferment period has no cost to it. Of course, there's chatter of the EIDL being forgiven, but since this program has been around a long time for other folks that have gone through past disasters (floods, fire, hurricanes, etc), they'd have to provide forgiveness to those people as well. I can't see forgiveness of all amounts for all EIDL loans. Maybe they partially forgive EIDL loans (I could see $25K being a magical number), but if anyone out there is thinking of taking the EIDL, make sure you do your own DD.


----------



## bobby747 (Dec 29, 2015)

The loan is good for a driver above uber x. say a black suv driver . with $20k equity in his car. he needs to borrow no more than 17k. uber x drivers are a super bad risk many have bad tires. no saving. low pay.
guys getting 100k are nuts.
but they could be on welfare. you wont get away not paying. but if you are going to jail any way . take the 200k now


----------



## Atom guy (Jul 27, 2016)

Any SBA loan over $25k comes with all sorts of strings, requiring business owners to get approval from the SBA to do certain things like selling of assets. It's definitely not free and easy money. And you owe the government, so default will just mean years and years of having any tax refunds confiscated, as well as possible garnishments and asset seizures.


----------



## Forrestsmagical (Mar 23, 2017)

Emails are going out for the 5,000 dollar supplemental targeted advance.










The application was a simple check box. Check your portal after there will be another button to submit. I had to log out and back in twice for the button to show.


----------



## Daisey77 (Jan 13, 2016)

InIt4TheLongHaul said:


> It is a nice cushion, but you do realize that even if you don't use any of the $112K, once the deferment period ends (18 months out), you owe that $112K PLUS all accrued interest between now and then, right? On a $112K loan, you're looking at an extra $6K you'd have to pony up just paying the whole thing back at the end of the 18 month deferment. If that works for you, great, but I think too many people are thinking the deferment period has no cost to it. Of course, there's chatter of the EIDL being forgiven, but since this program has been around a long time for other folks that have gone through past disasters (floods, fire, hurricanes, etc), they'd have to provide forgiveness to those people as well. I can't see forgiveness of all amounts for all EIDL loans. Maybe they partially forgive EIDL loans (I could see $25K being a magical number), but if anyone out there is thinking of taking the EIDL, make sure you do your own DD.


Exactly this. Why did it hit me in the middle of the night one night? I couldn't breathe. I was thinking of all the interest that's going to accrue the first two years if I don't start paying on it. I have the money to pay it off but I'm thinking of paying about 60% of it off just to cut down on the interest that will accrue if I decide not to make another payment for the rest of the deferment period. I would like to keep a little bit of a cushion just till we get through this pandemic. I think if I figured it out right, by making this lump sum payment right now, it'll shave like 20 years off the loan, if Lord forbid I just make the minimum monthly payment starting next year. It'll also shave off most of the interest. If people actually sat down and calculated out the total amount they'll be paying back if they were to follow the payment plan, I have a feeling a lot of drivers would be second-guessing their decision to take the loan.


----------



## Jimmy44 (Jan 12, 2020)

Taxi2Uber said:


> I'm sure you'll be able to explain how someone paying back a loan is considered a "mooch".


I got a 1000 dollar grant and 1000 dollar loan.
I appreciated both as it made up for the money I lost being on the sidelines.
We are all CEO's of our business.
If a CEO passed up legal and legitimate ways to increase profit or reduce Debt He/She would be fired.


----------



## Forrestsmagical (Mar 23, 2017)

Supplemental 🧀 approved.


----------



## Jimmy44 (Jan 12, 2020)

Forrestsmagical said:


> Supplemental 🧀 approved.
> 
> View attachment 592861


Congratulations !!!


----------



## Jimmy44 (Jan 12, 2020)

Daisey77 said:


> Exactly this. Why did it hit me in the middle of the night one night? I couldn't breathe. I was thinking of all the interest that's going to accrue the first two years if I don't start paying on it. I have the money to pay it off but I'm thinking of paying about 60% of it off just to cut down on the interest that will accrue if I decide not to make another payment for the rest of the deferment period. I would like to keep a little bit of a cushion just till we get through this pandemic. I think if I figured it out right, by making this lump sum payment right now, it'll shave like 20 years off the loan, if Lord forbid I just make the minimum monthly payment starting next year. It'll also shave off most of the interest. If people actually sat down and calculated out the total amount they'll be paying back if they were to follow the payment plan, I have a feeling a lot of drivers would be second-guessing their decision to take the loan.


Sounds like a plan !!


----------



## oldfart (Dec 22, 2017)

lala2016 said:


> Was that money deposited in a business or personal account? And if so what bank please?


My first $29000went to a personal account at Bank of America that’s where the second part is supposed to go. I was approved last Friday


----------



## gordontufano (12 mo ago)

How can I wait for the loan repayment period? I don't understand the topics related to finance, so I decided to find out from you the value of the loan repayment period for both parties. Is there any deadline from which I'll have to start paying my bills? Or do I have the right to pay half of the loan amount after some time if I have the opportunity? I want to take out a mortgage on a house soon and address such stupid questions to my Mortgage Broker Doncaster. But you also answer me, please. I'm at a dead-end right now.


----------



## Daisey77 (Jan 13, 2016)

gordontufano said:


> How can I wait for the loan repayment period?


I'm not understanding what you're asking. The loan is automatically deferred for two years but interest still accrues. Obviously none of us are at the two-year Mark yet so I'm not sure what happens once the two years is up.


----------



## Jimmy44 (Jan 12, 2020)

Daisey77 said:


> I'm not understanding what you're asking. The loan is automatically deferred for two years but interest still accrues. Obviously none of us are at the two-year Mark yet so I'm not sure what happens once the two years is up.


I believe you can get the address and start making payments early.


----------



## Daisey77 (Jan 13, 2016)

Jimmy44 said:


> I believe you can get the address and start making payments early.


Yes, you're able to make payments at any point.


----------

