CARES Act for Multifamily and CRE property owners
Most importantly, I hope you and your family remain healthy and safe!
However, the good news is that the SBA recently announced the Paycheck Protection Program (PPP) loan. These are available for most business owners to cover employee expenses, contractor expenses, rent expenses, and even includes the owners payroll (subject to certain caps and restrictions).
Here are some highlights, based on our most recent feedback about the program:
1) It's a very easy loan application process.
2) You can apply for 2.5x your average monthly payroll (including owners income).
3) The loan is intended to be 100% forgivable (if you follow the SBA's guidelines).
The process is simple... Submit a Loan Request here.
For what it's worth, we've already applied for PPP and I think all business owners should submit an application as well. The first loans should go out as early as Friday!
In addition to the PPP loan, you should also apply for the disaster relief loan, which may include an advance up to $10k. I suspect all small businesses should be eligible (including the LLCs that you own your properties under). You can apply for disaster relief loan here.
Another good idea is to proactively reach out to your tenants. If they lost their job, get them access to unemployment benefits as quickly as possible. If you have an agency loan, the terms are far from perfect, but FNMA and Freddie will be providing forbearance on loans.
Anyhow, let me know how it works out after you apply for the PPP loan here.