Coronavirus Florida: The Boynton Community Asks For A $ 3 Million Small Business Loan … But Is It Even Eligible? – News – The Palm Beach Post


Palm Beach County Coronavirus Update: Hunters Run is asking for a $ 3 million loan under a new federal program designed to help small businesses affected by the coronavirus.


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Hunters Run Country Club will seek a $ 3 million loan under a new federal program designed to help small businesses affected by the coronavirus.

Michael Soroka, chairman of the Hunters Run Property Owners Association, said the board unanimously decided to apply for the loan on Thursday. The loan, which can eventually be canceled, is designed to keep 350 employees in business. “We haven’t fired anyone and our goal is to keep them all on the payroll. “

The question is whether Congress has ever considered a community of golf courses participating in the “Paycheck Protection Loan” program designed to cover the wage costs of small businesses decimated by the coronavirus. Soroka said the outside lawyer and club accountants concluded that Hunters Run was eligible to get the funds.

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The Small Business Administration was due to start accepting applications on Friday, but a number of banks in the region have indicated that they are not yet ready to accept applications.

Under this program, a business can get up to 2.5 times their monthly salary costs. The funds can also be used to cover the costs of utilities. The loan becomes a grant as long as Hunters Run does not fire its employees. Congress has allocated $ 349 billion to fund the program.

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The SBA has urged companies to apply for the funds quickly as it expects “high demand.” Funds will be available until June 30 or until exhaustion.

Hunters Run employees maintain three 18-hole golf courses, 16 tennis courts, four pickleball courts, swimming pools and a fitness center. They also operate a number of restaurants. Like other country clubs, the restaurant operation has been converted to a pickup and delivery service.

“We are clearly a small business,” Soroka said, “and therefore we believe we are eligible for these funds.”

Joshua Gerstin, a Boca Raton lawyer specializing in property owner and condominium association law, said he expects one of the factors the SBA will look at is the amount of revenue a country club has draws from its evaluations.

“If this is a 100% assessment, the country club or the HOA might have a problem,” he said. “But if a large portion comes from restaurants and other sources that members pay outside of their reviews, they might be eligible.”

Homeowners associations that rely solely on a management company to oversee their communities have few or no employees. They might have a hard time getting those funds, according to Gerstin. But the management companies themselves may be eligible.

He expects other country clubs that employ people to apply as well. “It’s a good idea and it makes sense that they are doing it,” he noted.

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