Apartment Trends Magazine June 2020 June 2020 | Page 32

APARTMENT ADVOCATE NATIONAL APARTMENT ASSOCIATION / NATIONAL MULTIFAMILY HOUSING COUNCIL Replenished Paycheck Protection Program Faces Same Challenges On April 24, President Trump signed into law The Paycheck Protection Program (PPP) and Healthcare Enhancement Act (HR 266), allocating an additional $310 billion to the lending program administered by the Small Business Administration (SBA). The bill also provides an additional $60 billion to the SBA’s disaster loan program, replenishing the Economic Injury Disaster Loan (EIDL) with $50 billion and boosting the EIDL’s $10,000 grant mechanism with an additional $10 billion. The PPP, which saw its original allocation of $349 billion exhausted after 13 days of activity, received some smart, realistic changes in HR 266 meant to encourage dedicated lending to traditionally small businesses unable to receive assistance during the first round of funding. Thirty billion dollars of the PPP’s allocation will be reserved for lenders with assets of less than $10 billion, while another $30 billion will be earmarked for lenders with assets between $10 billion and $50 billion. Dedicated funding to certain lenders will allow eligible small- to medium-sized borrowers gain preferential access to critical financial support. Still, no adjustments were made to grant eligibility for multifamily housing firms that face challenges in applying for PPP funding: • Passive business owners • Owners who enter into contracts with third parties to manage properties • Apartment buildings • Businesses with more than 500 employees The National Apartment Association (NAA) is encouraged by the work of ® ENGINEERED FOR THE LOOK OF REAL WOOD LP ® SmartSide ® Siding — The Real Advantage For Remodelers Custom look | Cuts easily | Proven 20 years 5/50-Year Limited Warranty* *For complete warranty details, visit LPSmartSide.com TREATED WITH SMART GUARD ZINC BORATE- BASED PROCESS LPSmartSide.com ©2019 Louisiana-Pacific Corporation. All rights reserved. All other trademarks are owned by Louisiana-Pacific Corporation. 30 | TRENDS JUNE 2020 www.aamdhq.org