Association Loans?

By Susan M. Hawks McClintic, Esq. & Jon H. Epsten, Esq.

You may have heard that the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020 includes the Paycheck Protection Program (“PPP”) to help businesses keep operating during this pandemic.

The PPP gives small businesses access to short-term cash flow assistance to help cover operating expenses, including payroll. Loans received under the PPP are forgivable under certain circumstances, meaning all or a portion may not be required to be prepaid. A primary goal of the PPP loan program is to help businesses keep or rehire employees once businesses can return to normal operations.

It is uncertain whether community associations or property owner associations are considered businesses which are eligible to receive loans under the PPP.

The loan applications are being administered by some FDIC banks so we encourage any associations with employees to discuss the PPP program with their bankers as soon as possible, as it is expected that funds will be depleted soon.

Other loan programs may be available to community associations and property owner associations through the Small Business Administration (SBA) or the association’s bank. In addition to the PPP loan program, the Economic Injury Disaster Loan (EIDL) program is gaining attention. These loan programs, including the qualifications and applications, can be found on the SBA website (

Keywords: COVID-19, Coronavirus