Quote:
Originally Posted by retiredguy123
I think a business owner can get a loan for 2.5 months of their payroll. Then, if they continue to pay the employees, the loan will be forgiven. I don't think that has any effect on their rent. But, in fairness, a business that shuts down has two victims, the tenant and the landlord.
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Below is a copy of the summary of the loan specs from the SBA website:
"Loan Information
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020."
As for the developer, they probably debt-financed the building of the commercial property leased out in The Villages. This means they have mortgage payments to make. Not knowing how many they employ, but assuming they have more than 500 employees, they would not qualify for this particular program.
I believe it would be an invalid assumption to think all landlords forgive lease payments due to the fact that the landlords have mortgage payments to make. Of course, the bank earns money via the interest earned on the mortgage loans. It is a more complex chain of events than the average person thinks.
If the landlords do not have debt related to the property they own, they would be in a more flexible position to reduce or delay the receipt of rents.
Just some things to consider...l