SBA Disaster Assistance Assistance COVID-19

Started by MB8 • 9 replies • 621 views

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MB8 (Maryland)
Posts: 40

Posted:

Has any of your HOA's tried to apply for a SBA Disaster Loan? I have heard that a few HOA in my area are applying and found the information on the Community Associations Institute website. Until I saw the information posted on their site, I was not aware that HOAs could apply for such grant/loan assistance. Your thoughts?

AugustinD
Posts: 5,144

Posted:

For HOA SBA Disaster assistance info, see:

https://disasterloan.sba.gov/ela/Information/FactSheetAssociations

https://www.sba.gov/sites/default/files/Association%20Fact%20Sheet.pdf

MB8 (Maryland)
Posts: 40

Posted:

Thank you.

PaulJ6
Posts: 990

Posted:

Why couldn’t a HOA apply for a forgivable Paycheck Protection Program Liam from the SBA, as long as it has a payroll? Nonprofits can apply.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By PaulJ6 on 04/07/2020 5:27 PM
Why couldn’t a HOA apply for a forgivable Paycheck Protection Program Liam from the SBA, as long as it has a payroll? Nonprofits can apply.

I believe they can. A PPP loan is different than a Disaster Loan, though. Disaster loans are nothing new, but the PPP program certainly is.

Until earlier today I thought that businesses could include payments to contractors (reported on a 1099) as "payroll". Today, however, I saw something that said a clarification was made and that contractors who get paid on a 1099 would be responsible for their own payrolls, and businesses could not count any 1099 payments as "payroll" for the purpose of obtaining a PPP loan.

MarkW18
Posts: 1,290

Posted:

First, the Disaster Relief is for repairs, so this pandemic wouldn't qualify.

Second, while there are some HOA's that actually have employees, those are few and far between. Exceptions could be HOA's that operate golf courses and restaurants. I have noticed a number of private courses remain open, their food services either have closed or take out only.

MB8 (Maryland)
Posts: 40

Posted:

Got it. Thank you

AugustinD
Posts: 5,144

Posted:

MB8, I would consider a hazmat-type company disinfecting any clubhouse, playground, gym or other common area you have where people are touching tables, chairs, equipment and the like. Right now, your HOA could get estimates. When the re-opening of these facilities is appropriate, first hire a company to disinfect surfaces. If the estimates for this work are extraordinary in cost dollar-wise, consider applying for the SBA disaster assistance loan.

Scientists are predicting waves of COVID to continue for some time. I just read about the efforts the New York City subway system takes to disinfect trains. It's amazing (at this point). After several thousand workers fell ill and a few dozen died, what they do to the trains and buses is not trivial. To minimize further outbreaks, I think HOAs would do us all a favor by applying the same "best practices" corporate America has started to practice nationwide.

PaulJ6
Posts: 990

Posted:

So my HOA's property manager applied for a PPP loan for the HOA, without telling the HOA board.

Wow.

MarkW18
Posts: 1,290

Posted:

Quote:

Posted By PaulJ6 on 04/08/2020 12:33 PM
So my HOA's property manager applied for a PPP loan for the HOA, without telling the HOA board.

Wow.

In your case, why am I not surprised

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