With over $60 Billion Dollars allocated to the EIDL loan program and many businesses in a rush to borrow under the EIDL program, I am predicting an SBA Loan Bubble that could potentially burst and backfire on MILLIONS of business owners across the country. In this video, I'm going to share my concerns as to how there's an SBA EIDL loan bubble brewing and what business owners need to do prepare. I've been following and breaking down the process of getting the EIDL loan and the grant of up to $10,000... I was pretty excited about this loan...until... I read the loan contract. And it made me think about the potential consequences of businesses taking these loans and what could be a potential bubble that could burst. 📑 SBA EIDL Loan Agreement Breakdown: https://www.youtube.com/watch?v=sJbMtGF420Q 📊 How to Pay Off Your Mortgage in 5-7 Years: https://youtu.be/3f-ebCjeH8o 1:40 - What's You Cannot Do with the EIDL Loan Program 3:31 - The Hidden Problems with the EIDL 5:13 - My Concerns about the Potential Bubble 😃 Thanks for Subscribing & Liking our Video! 📧 Get Our 1:1 Real Estate Investing Coaching and Mentoring: https://thekwakbrothers.com/thekwakbrothers ⌨️ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com 💻 JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup 📡 PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 🔊 Our Podcast Channels: 📻First Deal Experience: 🔹Spotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B 🔹iTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 📻Landlording Automated: 🔹Spotify: https://open.spotify.com/show/1LTAeRg2ZAT1ATI1mdtWM0 🔹iTunes: https://podcasts.apple.com/us/podcast/landlording-automated-podcast/id1504548975 #eidl #eidlloan #sba What's wrong with the EIDL loan? Well, it's nice for the government to offer a lifeline to the business through the EIDL loan program but after reading the loan agreement, it's starting to sound like a business nightmare. First, the SBA is mandating strict documentation and a record-keeping requirement for all borrowers. Next, the SBA requires that you use the funds ONLY for working capital and even within the working capital category. Third, if you're borrowing more than $25,000 with the EIDL loan program, you are required to pledge an indefinite amount of business assets as part of the collateral. My biggest issue is that with the vagueness of the EIDL loan agreement, how many businesses would default on the loan? Not because they can't pay but what if they "accidentally" default on the loan... Without a more detailed guideline and information on the existing loan terms, the decision about whether a business has defaulted or not defaulted could be rather arbitrary. Also for those businesses that borrowed more than $25,000 - they had to pledge indefinite amounts of their assets (intangible and tangible) as part of the collateral to the loan. What's not to say that the SBA EIDL Loan Program can come and take over the business if the business defaults on the loan? So my concern is that we'll see a wave of small businesses that default on the loan, faced with a possible lump-sum payback on the loan, and potentially lose their assets if they borrowed more than $25,000 from the EIDL loan program. That also could mean a wave of bankruptcy which can interfere with other credit and debt established through the life of the business. The freedom in which we business owners have is taken away by the provisions in the EIDL loan program. The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicago-land area and they are dedicated to helping hard-working people become financially free real estate investor! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom) ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.