This week's paramount coronavirus-related issue for co-ops,
condos and HOAs has been the rollout of the Small Business
Administration's Paycheck Protection Program. Are co-ops,
condos and HOAs eligible to participate?
The Paycheck Protection Program is an SBA loan authorized by the
CARES (Coronavirus Aid, Relief, and Economic Security) Act, which
provides cash flow assistance for "Business Concerns"
(i.e., business entities organized for profit) who maintain their
staff during the coronavirus crisis.
There is ample confusion as to whether co-ops, condos and HOAs
are eligible to participate in the program. When the program was
first announced there was broad consensus in the co-op/condo
community that these associations and HOAs were eligible. However,
last Friday night (April 3) the SBA issued "interim
regulations" apparently stating they were not eligible to
receive loans as they are "passive" businesses that own
real estate for rental purposes. These interim
