Yesterday’s video conference briefing with Senator Schumer was a major milestone for the Co-op community to be seen as a constituency to be reckoned with by elected officials. The PCCC was instrumental in organizing this event and our Legal Advisor, Geoffrey Mazel, Esq, was the Moderator. Over 500 people attended the event, included many PCCC Members.

 

Senator Schumer discussed the long struggle he had in the US Senate to provide for Co-op eligibility in the Paycheck Protection Loan program. This inclusion now allows Co-ops the opportunity to apply for forgivable loans if the loan proceeds are spent in accordance with the applicable statutory guidelines. Please check with your Professionals to determine the amount of the loan for which your Co-op would be eligible.

 

A major issue for Co-op Boards is the certification of the PPP application. The Board must certify that the Covid pandemic has caused “financial uncertainty”. Obviously, this criteria is extremely vague and subject to various interpretations. Senator Schumer did state that this criteria does not require that your Co-op to have lost income, but only increased expenses as a result of the purchase of PPE, enhanced sanitation and increased utility costs as a result of residents spending much more time in their homes. 

 

To provide further information on this important issue, we are attaching the Small Business Administration FAQ’s from December 9, 2020. Please look at FAQ #46 where they further explain how the SBA will be review application certifications. This FAQ discusses a “safe harbor” for applications under $2,000,000. Again, please review with your Professionals to determine your Co-ops eligibility.