On December 28th, I wrote the blog post, “Housing co-ops and PPP loans: is it time to celebrate?Regarding the material and retroactive changes to the eligibility and administration of the Paycheque Protection Program (“P3”) through the Consolidated Appropriation Law 2021 (“LCA”) and “Economic Assistance to Small Businesses, Nonprofit Organizations and Hard-Affected Sites Act. ” This has been updated to December 30, 2020.

Cooperatives are now eligible for new PPP loans

With the adoption of the CAA, the PPP now applies to housing co-ops with 300 or fewer employees. The Small business management must provide new regulations for this second round of PPP within ten days of the enactment of the CAA. Co-operatives (“co-ops”) should plan to act quickly to apply for loans and start collecting the necessary financial information.

Here is an overview of the main provisions:

• Co-ops may be eligible for a loan of up to $ 2 million or up to 2.5 times their monthly salary expenses

• In order to qualify for a loan forgiveness, 60% of the proceeds must be used for payroll and the remaining 40% can be used for other qualifying expenses such as rent, utilities, and mortgage payments.

Next steps

If the co-op has a lender, it would be a good idea to contact them immediately since loans are given on a first come, first served basis.

The information in this article may not reflect the most recent developments, as the topic is extremely fluid and constantly changing. Please continue to monitor this site for ongoing developments. Readers are also cautioned against taking any action based on the information contained herein without first seeking the advice of professional legal counsel..