SBA EIDL and Paycheck Protection Program loans for property management companies
There has been an unanticipated shift in the way that we live, work, and interact. COVID-19 has led to a decrease in business activities which in turn has led to layoffs and panic among industries. Unfortunately, this has also resulted in requests for rent leniency and forgiveness.
In a perfect world, you could give your tenants as much time as they needed, but in reality, your company relies on rent income. So, when tenants can’t pay and you can’t evict, what can you do? The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) has the answer to your rent income needs.
The CARES Act & Property Management
The CARES Act is officially the largest economic stimulus bill in modern history, and with pump $2 Trillion dollars back into the US Economy. Despite what you may think, being a member of the property management industry isn’t so bad during a time like this. People need a roof over their head, and that’s exactly what you have to offer.
As April rent week continues you will get a better idea of where your company stands financially. However, at APM Help, we recommend that you get ahead of the curve and apply for financial assistance as soon as possible. April rent week might be going over well, but there is no way to predict what may happen in future months.
The stimulus bill has allocated $377 Billion towards small businesses, $349 Billion of which will be distributed via The Paycheck Protection Program (PPP). To be considered a small business means you have 500 or less employees. The loan application process through PPP is a more relaxed version of the standard Small Business Administration (SBA) loan. So, what does it cover?
Paycheck Protection Program details
These loans have the potential to be forgivable, and can be up to $10 Million in value. The total loan that you receive is based on 2.5x your average monthly payroll, with an annual payroll cap of $100,000 per employee. The loan will be forgivable if:
- “The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and”
- “Employee and compensation levels are maintained.”
Applications will be accepted from April 3, 2020 through June 30, 2020. You can find a sample application form here. There is a large amount of required financial data, and that’s where APM Help comes in. We can help you organize your financials to meet your lender requirements, which will most likely be payroll documentation and potentially other items.
If you’re interested in getting our help with your PPP application, please send us an email to firstname.lastname@example.org with the subject “PPP Loan”. Stay safe and healthy!