The CARES Act: Help for Landlords Through the Small Business Administration
By Matt Williams, Founder, Williams Real Estate Advisors
COVID-19 has thrown the multifamily industry into a tailspin. With local cities empowering renters to not pay rent during the emergency period and giving them six to twelve months, and maybe longer, to pay back deferred rent, owners are finding themselves in a tough spot and struggling financially. They now have less money coming in but almost the same amount of expenses going out.
As a property manager, my clients call me daily asking what can they do? The truth is there is very little they can do in relation to the renter non-payment other than work with then in line with the local jurisdiction’s ordinance or Governor’s Order. However, there are other options such reducing operating cost, prioritizing bills, asking lenders for mortgage deferment or forbearance, and now with the recent passage by Congress of the CARES Act, looking at possible Small Business Administration (SBA) Loans available during an emergency like this. Out of the four options listed above, we are going to give a brief overview of the two SBA Loans: Economic Injury Disaster Loan Program (EIDL) and Paycheck Protection Program (PPP)