Villages really helping small businesses?
 

The headline in today’s paper says that Villages is taking big steps to help small businesses. When you read the article, all it talks about is the Village owned bank doing what every other bank is doing to help process loans under the new federal law. Wouldn’t it be nice to learn that the Villages was taking some steps to postpone or reduce lease payments being made by retail owners during this trying time?

In my opinion TV will not make such a pronouncement.
Based on past behavior/experience they would more likely deal one on one with tenants as and or if they come forward.

They also have an option of sorts to defer "current" rent payments and have till the end of the existing lease to repay.

While I do not know for sure, one would think since they do own banks here, they might be able to establish a priority processing for tenants.

Not being negative, just offering observations. It would be a pleasant surprise if they came forward with a specific action....like rent deferral or even forgiveness. They would in turn be able to accumulate a revenue loss claim and submit it to the government for reimbursing.

Isn't that what the loans are for? Keep your employees and the loan is forgiven.

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.

Do you have information on other Developers that are reducing or forgiving rent or is this just a bash the Morse post?

Yes, Yes, Yes!!!!

SBA Paycheck Protection Program
 

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

It would sure be nice for some info on the $155 monthly amenity fee not being able to use, or the rec center gym membership I just renewed before they closed the rec centers. Just some info. Not too much to ask.

With regard to the amenity fee, what do you want to know? The executive courses are still being maintained, the debt on the amenities is still being paid, the pools are still being maintained, the utilities on the rec centers are still being paid, etc.

I don't understand how the Federal stimulus bill will really help a small business to survive. You can pay your employees, but they are not doing any work for you. You can get a loan, but you still need to pay your rent and other fixed expenses with no income to offset them. Many businesses are stuck with a multi-year lease. When you reopen in a few months, will your customers come back? And, what about your employees? They may decide to do something else. I think a lot of small businesses will be gone forever.

Exactly right. Everyone shares the cost burden and you hope there is a cushion for unforeseen expenses, but in the end, the amenities have to be maintained during this time whether used or not.

I pay the same every month for cable TV whether I watch it or not. And it's more expensive than our amenity fee.

If loss of use of amenities while still paying the monthly fee is the worst that hits my husband me, we are happy campers and grateful for all that we have here and the fact that it's being maintained. Also that the people who are doing the maintaining still have jobs.

Care
 

[QUOTE=retiredguy123;1740602]I don't understand how the Federal stimulus bill will really help a small business to survive. You can pay your employees, but they are not doing any work for you. You can get a loan, but you still need to pay your rent and other fixed expenses with no income to offset them. Many businesses are stuck with a multi-year lease. When you reopen in a few months, will your customers come back? And, what about your employees? They may decide to do something else. I think a lot of small businesses will be gone forever.[/QUOTE
In the legislation, payments of rent or mortgage plus utilities can be forgiven as well as long as the employees are paid.

Rent and mortgage payments are two entirely different things. I have seen where mortgage payments to a bank can be suspended, but not forgiven. But, most small businesses pay rent to a landlord under a private lease agreement. I have not seen anything that will suspend or forgive the lease payments. Can you cite a provision in the legislation? I know a person with a small business, and her landlord has refused to do anything to alter the lease.

I am referring to them as landlords, not a developer. There have been countless examples in the media of landlords sharing the burden. The family can well afford to provide some short-term leniency for the benefit of all. My point was the paper implied the family was healing out small businesses when there is no evidence to this.