Multifamily owners using a PM how do you interpret your eligibility if your PM pays payroll? I have been advised that if your holding co LLC EIN is NOT the one making the payroll then it does not count towards the loan calculation. It would technically be the PMs employee even though its your property, expense and liability. If this is the case then the PM would be eligible for the forgivable loan up to $10M. Think about that one for a second. A professional PM with 10,000 units would be the one getting the check and not the owner. I find this hard to believe. Maybe @Brandon Hall has an idea and can chime in, I'm not sure what to make of this. A 100 unit apartment complex typically can have $15k in average monthly payroll meaning it would be a $45k check for every property and it would be the PM and not the owner that would be eligible. 

True indeed--however I'd assume that any PM that has 10,000 units has more than 500 employees and thus wouldn't qualify...and any smaller PM that receives a forgiven loan that was used for payroll shouldn't be reimbursed by the properties for that payroll.  I hope someone finds a loophole here--I still have two properties that have a 3rd party PM.  Fortunately the rest of my portfolio is managed by a management company that I wholly own, so my properties will get some payroll relief!

Work it out with your PM where they would credit you for it.

Remember, there is also a $5k/employee retention bonus for employees you keep employed in the CARES act from what I understand.

PPP is on payroll only must prove you paid payroll taxes on employees for foregivness. So a PM will be reimbured only for their w-2 employees they employ as it stands currently. This is still fluid as we and our sba lender relation partners are waiting for more guidance. I think the 5k you are talking about is the tax credit 10k max per employee 50% credit and you can't take any government funds to get this from what I quickly read. I think this tax credit will basically help all of us under sba 13 CFR 120.110 who don't qualify for the PPP/EIDL.

I am leading the PPP program with our bank and we have not heard of a $5K per employee retention bonus. You loan amount is derived from a monthly average of your total (taxes, unemployment ins, insurance etc.) x a 2.5 multiple. So long as you can support the payroll data with documentation and you certify honesty; and subsequently use the funds to continue paying your employees, the same amount you are listing on the application, then your loans will be forgiven.

Originally posted by @Brian Burke :

True indeed--however I'd assume that any PM that has 10,000 units has more than 500 employees and thus wouldn't qualify...and any smaller PM that receives a forgiven loan that was used for payroll shouldn't be reimbursed by the properties for that payroll.  I hope someone finds a loophole here--I still have two properties that have a 3rd party PM.  Fortunately the rest of my portfolio is managed by a management company that I wholly own, so my properties will get some payroll relief!

also this is where have great banking relationships come in at a commercial bank not a big box bank.

we got a memo from our Bank saying these loans were available but you needed  1. existing banking relationship 2. existing loans with them 3. deposit relationship.. all three not just one or two..  Will see I got my app to the person in charge of the program for the bank.. And talked to him on the phone.. got a referral from my banker the Senior VP in charge of lending for Oregon.. wanted to PULL out all the cards  LOL  we dont have but 2 employees but Lord knows we pay our tax's.. so this will help as our payoffs have been stalled.