• News
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
  • Marketing
  • Tech
  • OTAs
  • Customer Service
  • Regulations
  • Business
  • Housekeeping
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
VRM Intel
  • News
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • Rent Responsibly announces new partnerships and new virtual conference series
      Rent Responsibly Launches New 2022 Partnerships and a New Virtual Conference Series for VRMs and Others
    • Houses in Koko Head, Oahu, Hawaii
      Property Managers And Owners Sue Honolulu County Over Bill 41
    • VRM Intel News
    • Latest News
    • Sponsor News
  • COVID-19
    • 2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more
      Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
    • “It’s like a short-term rental regulation pandemic.” 2022 Spring Vacation Rental Regulatory Trends + Fall Outlook
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
    • 5th Annual #BookDirect Guest Education Day, Feb 2: Why It Matters
  • Marketing
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
    • Moneyball for Vacation Rental Managers
    • 4 Ways to Stand Out in a Crowded Market: Get Your Brand & Listings in Front of Potential Guests
    • Why, When, and How to Upgrade Your Hospitality Software
  • Tech
    • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    • Vacasa (VCSA) Stock Falls as Lock-up Period Expires
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
    • Front of the House, Meet the Back of the House
    • Why, When, and How to Upgrade Your Hospitality Software
  • OTAs
    • Vacasa (VCSA) Stock Falls as Lock-up Period Expires
    • 4 Ways to Stand Out in a Crowded Market: Get Your Brand & Listings in Front of Potential Guests
    • Stays Group and Touch Stay Announce Partnership that Strengthens The Vacation Rental Travel Ecosystem
    • 2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos
    • Using Airbnb For Bookings Just Got Even More Risky with New Refund Policy
  • Customer Service
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • View of Waikiki from Diamond Head Park, Honolulu, Hawaii
      Honolulu City Council Bans Stays Under 90 Days Across Oahu
    • Are you a Visionary without an Integrator at Your Vacation Rental Management Company?
  • Regulations
  • Business
    • Leading Proptech Company Guesty Appoints David Aber as CFO
    • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    • 2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more
      Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions
    • 5 Steps to Clean Up and Organize Your Vacation Rental Website
  • Housekeeping
    • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    • Analysis: “Reinventing” Vacation Rental Management by Alex Nigg
    • HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation
    • Safety First: Evaluating and Addressing Safety Risks at Your Vacation Rentals
    • The Importance of the Guest Experience within Vacation Rental Operations: From the Back of the House to the Front
  • Subscribe
  • More
    • Calendar of Events
    • VRM Intel Live!
    • Reports Login
    • VRM Intel Magazine
    • Advertise
    • Authors
    • About Us
    • Contact Us
  • RSS

COVID-19

Understanding Aid Available through the Paycheck Protection Program for Vacation Rental Managers

Understanding Aid Available through the Paycheck Protection Program for Vacation Rental Managers
mm
Brooke Pfautz
March 29, 2020

A Simple Guide to Help Vacation Rental Managers Understand Aid Available through the Paycheck Protection Program

Undeniably, the vacation rental industry has been absolutely shaken as a result of the spread of COVID-19. Companies are hurting badly, and I’m seeing it first-hand. Many are furloughing or laying off employees; some have gone dormant; and others have already closed their doors. If the restrictions and lockdowns on travel continue, many more vacation rental businesses will not survive. Fortunately, the government has come together to approve several aid packages to help small businesses in our industry.

These programs include the Economic Injury Disaster Loan (EIDL), the Families First Coronavirus Relief Act (Families First), the Coronavirus Aid, Relief, Economic Security (CARES Act), and state-based programs.

By far, the most impactful aid for vacation rental managers is a section within the CARES Act: the Paycheck Protection Program.

 

What is the Paycheck Protection Program?

The Paycheck Protection Program (PPP), formed under the CARES act, is a $349 billion program that provides small businesses with cash-flow assistance through 100-percent federally-guaranteed loans. The best part . . . all or part of the loan may be forgiven.

Highlights

  • Businesses can borrow money for payroll, health care benefits, employee compensation, mortgage interest, rent, utilities, and interest on debt.
  • All or a portion of loans may be forgiven as part of a process that incentivizes companies to retain employees.
  • Loan amounts up to $10 million
  • No collateral required
  • No personal guarantee required
  • Interest rate not to exceed 4 percent (Treasury Dept currently has it listed at 1.0%!)
  • Loan term up to 2 years (no prepayment penalty)
  • Payments can be deferred from 6 months to 1 year
  • Not taxed on forgiveness
  • Free to apply

Who Qualifies?

Pretty much everyone in the vacation rental industry qualifies. PPP loans are available for businesses with no more than 500 employees, and companies must have been in operation as of February 15th, 2020. 

Borrowers do not need to demonstrate actual economic harm in order to qualify. Instead, they simply need to make a series of good-faith certifications, principally that current economic conditions necessitate the loan to support ongoing business operations, and that the funds will be used to maintain payroll and address other covered expenses.

What can I use the funds for?

The main idea behind the PPP is to retain employees. The funds can be used for payroll and commission payments, group health care benefits/insurance premiums, mortgage, rent, utilities, and interest on any other debt obligations that were incurred before the covered period.

How much can I get?

Businesses can receive roughly 2.5 months of payroll costs.

Payroll costs in this case are defined as salaries, sick leave, separation agreements, insurance premiums, retirement benefits or payment of state or local tax assessed on the compensation of employees.  For example, if you average $500,000/year in the payroll costs above, you can receive a loan for just over $100,000 ($500,000 / 12 = $41,667 x 2.5 = $104,167).

I’ve created an online calculator to help calculate the amount you can get and how much will be forgiven.

Click here to try it for yourself.

Can I get some or all of my loan forgiven?

Yes. There is a component in the PPP that businesses would be eligible for forgiveness on portions of their loans if used for certain costs like payroll, mortgage, rent, and utilities that are incurred during an 8-week period starting on the loan’s origination date. The amount of forgiveness is based on the number of workers retained (or rehired) vs. the same period previously.

However, it is important to note that the amount of loan forgiveness will be reduced if salary cuts exceed 25 percent.

What about the SBA Economic Injury Disaster Loan (EIDL)?

EIDL Loans are provided directly from the Small Business Administration (SBA), and loans are available up to $2M. Rates are 3.75 percent, and terms are available up to 30 years.

EIDL Loans require:

  • Pledged collateral for loans in excess of $25,000
  • SBA-acceptable credit history 
  • SBA-determined ability to repay
  • Personal financial disclosure and tax returns
  • Please note . . . it is still unclear at this time if you can take loans under both EIDL and CARES PPP. We are waiting for guidance from the SBA

How do you apply?

Loans will be available immediately through SBA 7(a) certified lenders, which include banks, credit unions, and other financial institutions. The deadline to apply for the Paycheck Protection Program is June 30th, 2020.

SBA Lenders will begin taking applications for businesses and sole proprietorships April 3rd and for independent contractors and self-employed individuals April 10th. 

For more information, contact Brooke Pfautz, founder and CEO, Vintory at Brooke@Vintory.com or 410.458.3900. Vintory.com 

 

Resources

PPP Application

PPP Information Sheet from Treasury Department

Treasury’s Website for CARES Act

Treasury Interim Final Rule

SBA Webpage Dedicated to the PPP

SBA Webpage Related to COVID-19

US Chamber of Commerce Summary of PPP

US Senate Committee on Small Business & Entrepreneurship – Guide to the CARES Act

CARES Act – Click here to read the bill in its entirety 

List of the 100 most active SBA 7(a) Lenders

USBank Paycheck Protection Loan Program Inquiry Form

To Apply for SBA’s Economic Injury Disaster Loan (EIDL) Program 

SBA Paycheck Protection Program Online Calculator

Related ItemsaidBooke PfautzemployeeFeaturedfurloughlay offloansmanagerspaycheckpayrollprotectionreliefshort termVacation rentals
View Comments (8)

8 Comments

  1. Pingback: VRS331 - Navigating Covid-19 Aid Programs For Short Term Rentals with Brook Pfautz - Vacation Rental Formula
  2. ELDON C BAGEANT JR says:
    April 6, 2020 at 6:54 am

    I have payroll expense, but report my vacation rental on Schedule E of my tax return.

    Do I qualify for the PPP?

    Reply
  3. Jonna Kitchen says:
    April 3, 2020 at 10:49 am

    I manage 35 vacation homes and have 6 regular employees including myself plus several independent contractors. Our business is very seasonal May – Sept. due to our rainy climate in the Redwoods. Is it worth taking out a PPP loan when my business has been completely shutdown by moratoriums on travel/tourism in my county until California lifts it’s “Shelter in Place” order? I would have to hire back my staff for 8 weeks and pay them when no work is available and I doubt we will be open by June. Then what, lay them all off again??? Aren’t we all better off collecting unemployment for an extended period until the travel industry bounces back which could be far, far longer than 8 weeks? So much to consider.

    Reply
  4. Warren Driggers says:
    April 3, 2020 at 9:22 am

    My wife and I have two rental properties each in a different state. They are both operated as sole proprietor businesses within each state. In applying for the loan should it be done individually by state or together?

    Reply
  5. Ryan J Mcdermott says:
    March 31, 2020 at 7:59 am

    Thanks for this. An important issue that should be addressed is the eligibility of AirBnB/VRBO/HomeAway hosts who do not have employees on payroll. For example, my wife and I own an AirBnB. We are Sole Proprietors. My wife manages it, and it is the only income she generates. But she is not “on payroll.” On our taxes, this is taxed as self-employment income. So two important questions are:
    1. Can we claim the income my wife makes through the ABnB as payroll?
    2. If not, are we still eligible for the mortgage and utility payments portion of the program?
    (2a) If yes to (2), would this loan be eligible for forgiveness?
    Thanks for any help you can provide!

    Reply
  6. Brooke Pfautz says:
    March 30, 2020 at 4:57 pm

    Just a quick update in regards to how much you can get. You can get 2.5 times your average payroll costs. Payroll costs in this case are defined as salaries, sick leave, separation agreements, insurance premiums, retirement benefits or payment of state or local tax assessed on the compensation of employees.

    The forgiveness portion DOES take into mortgage, rent, and utilities.

    Reply
    • Nancy E Dinucci says:
      May 6, 2020 at 12:41 pm

      I file a schedule E for my tax returns for vacation rentals and long-term rentals. I have not found a bank that will accept the schedule E, only schedule C. I know MANY people in this situation who cannot find a solution if they file a schedule E.

      Can you please tell me how I can get around this, since your article says “pretty much everyone in the vacation rental industry qualifies”? I would love for this to be true and I am trying from every angle, but have not found a solution. My 3 units make are a large part of my personal income and the Florida government continues to ban us from operating until possibly “Phase 2” and then we would be allowed to rent to only Florida residence. I can’t imagine we would be eliminate when we are intentionally shut down by the government, unable to produce income.

      Reply
  7. Conrad O'Connell says:
    March 30, 2020 at 9:54 am

    Great info Brooke, they’ve updated and made this active today:

    https://covid19relief.sba.gov/

    Reply

Leave a Reply

Cancel reply

Your email address will not be published. Required fields are marked *

COVID-19
March 29, 2020
mm
Brooke Pfautz

Brooke Pfautz is one of the industry's foremost experts in growing vacation rental inventory. He got his start in the industry 13 years ago when he founded Vantage Resort Realty in Ocean City, MD and took an idea on a napkin to more than 500 properties in just five years. After a successful exit, he went on to grow inventory for other major vacation rental brands as a chief business development officer in Orlando, FL. Most recently, as an executive at a leading vacation rental software company, he saw first-hand through MasterMind groups that he launched and facilitated what worked and what didn’t for the 20 largest and most successful companies on the platform. Today, Brooke runs Vintory, the only outsourced business development agency in the vacation rental industry dedicated entirely to helping professional property managers add new homes to their programs.

Related ItemsaidBooke PfautzemployeeFeaturedfurloughlay offloansmanagerspaycheckpayrollprotectionreliefshort termVacation rentals

More in COVID-19

2022 Vacation Rental acquisitions from AvantStay, VTrips, Vacasa, Meredith, and more

Who Sold? Here’s What We Know: 2022 Vacation Rental Management Acquisitions

Amy HinoteJune 10, 2022
Read More

2021/2022 Ski Destinations Showing Big Performance Gains in ADR and RevPAR for Vacation Homes and Condos

Melanie BrownApril 1, 2022
Read More

“It’s like a short-term rental regulation pandemic.” 2022 Spring Vacation Rental Regulatory Trends + Fall Outlook

Paris AchenMarch 29, 2022
Read More

HR 2022: Attracting Today’s New Workforce after the Resignation Tsunami and the Great Renegotiation

Sue JonesMarch 23, 2022
Read More

5th Annual #BookDirect Guest Education Day, Feb 2: Why It Matters

Amy HinoteFebruary 1, 2022
Read More

Simon Lehmann and Nicolas Galantini: Harnessing Industry Recovery

Simon LehmannOctober 5, 2021
Read More
Scroll for more
Tap

Sponsor News

  • How One Vacation Rental Firm Finally Solved the Trust Accounting Problem
    BusinessJune 13, 2022
  • VTtrips Acquires Carolina Retreats, Silver Sands, Miss Kitty’s, and Tybee Vacation Rentals
    BusinessJune 7, 2022
  • Moneyball for Vacation Rental Managers
    BusinessJune 6, 2022
  • Is now the best time to sell your vacation rental business?
    BusinessJune 1, 2022
VRM Intel
Calendar of Events
Videos & Whitepapers
VRMintel Magazine
Subscribe
Advertise
About Us
Authors
Contact Us

Recent News

  • Why Not A Hotel? A Guest and Homeowner’s Perspective: There’s No Place Like Home … Or Is There?
    Customer Service for Vacation Rental ProfessionalsJuly 4, 2022
  • Aspen and Pitkin County, CO Limit Vacation Rentals to 120 Days a Year
    RegulationsJuly 1, 2022
  • Leading Proptech Company Guesty Appoints David Aber as CFO
    BusinessJune 21, 2022
  • Meredith Hospitality Brands Inc. Expands to Mt Hood with Acquisition of Mt Hood Vacation Rentals
    BusinessJune 21, 2022

View Current Issue

VRMintel Copyright © 2016-17 | Click HERE to Subscribe | Privacy Policy | Disclaimer | Copyright | Jobs | Facebook | Twitter | LinkedIn

Monthly Revenue Scenarios across Vacation Rental Markets as Travel Restrictions Extend
Airbnb to pay $250M to hosts for canceled bookings: “We want to fix this.”

xxx videos

  • mamadas
  • redwap
  • free porn
  • porno gratis