The most recent federal Coronavirus stimulus law, finally signed on December 27, 2020, extends the PPP loan program to residential cooperatives.
PPP loans are loans made by banks that are 100% guaranteed by the United States Small Business Administration, with up to 100% of the loan being eligible for forgiveness if the borrower spends an amount equal to the loan proceeds on specific types of expenses. Unfortunately, the extension of the law does not cover condominiums and homeowner associations.
Although some banks made PPP loans to residential coops under the original statute, others did not because they believed that the loans were not allowed. The new law removes the uncertainty, so coops are now unquestionably eligible. Therefore, if your coop suffered financial hardship as a result of the COVID-19 pandemic, it may be eligible for a PPP loan. Read more here.