J A N U A R Y 10
L E H A V R E
N E W S
PCCC Leads National Effort to
Include Co-ops in the PPP Program
BY GEOFFREY MAZEL, ESQ.
COUNSEL TO THE PRESIDENT’S
CO-OP & CONDO COUNCIL
On Dec. 27, 2020, the President
finally signed the Covid Stimulus
Relief Bill. This bill includes relief for
a wide range of Americans, including
$600 direct relief checks for qualified
people; relief for the airline industry;
restaurant industry; extension of supplemental
unemployment benefits and
may other provision. The legislation is
over five thousand pages in length.
Tucked away in this legislation is
much-needed relief for cooperative
housing corporations. This legislation
specifically makes Co-ops eligible for
forgivable loans under the Payment
Protection Program. The inclusion of
co-ops in this legislation was the result
of a long hard battle, led by a Queensbased
organization, the President’s
Co-op & Condo Council (“PCCC”).
The PCCC is a residential cooperative
advocacy organization. While they
have vast experience on local issues
with the New York City Council and
New York State legislature, they had to
reach out to a national network of organizations
to push for this legislation.
The Payroll Protection Program
(“PPP”) was part of the original
CARES Act passed by the US
Congress and it provided forgivable
loans to small businesses
in March, 2020. Since the
Covid pandemic was raging
at this time, this program provided
a glimmer of financial
relief to the suffering co-op
community. Obviously, PPP
loans would provide much
needed relief to co-op residents
who have been hit hard
by the Covid crisis, especially
in New York City, the epicenter of
the pandemic at that point in time.
However, on Apr. 2, 2020, the tens
of thousands of co-op residents in
our area and the 1.5 million co-op
residents in this country were devastated
to learn that the U.S. Small
Business Administration (SBA) issued
an Interim Final Rule stating that the
Payroll Protection Program excluded
“passive entities,” which would
include residential cooperative corporations.
This ruling unfairly carved
residential co-ops out of this critical
relief program. The PCCC took immediate
action to right this tremendous
injustice.
l-r: PCCC Executives Mark Ulrich, V.P.; Janice Schreibersdorf, Secretary; Michael Kurtz, Treasurer; Warren Schreiber, co-President;
Geoffrey Mazel, Esq., Executive Member/Counsel; Bob Friedrich, co-President
At that time, the PCCC spearheaded
a national coalition of co-op advocates,
including elected officials and
sister co-op organizations. The feedback
was immediate and effective.
On Apr. 22, 2020, Northeast Queens
Councilman Paul Vallone introduced
a resolution calling on Congress and
President Trump to expand the CARES
Act and Payroll Protection Program
10 LEHAVRE COURIER | JANUARY 2021 | WWW.QNS.COM
to include considerations for residential
cooperatives and condominiums,
allowing them to access critical PPP
loans processed by the US Small
Business Administration.
In May, 2020, as a result
of the support of Congress
members Grace Meng
and Tom Suozzi and the
Queens Congressional
Delegation, the House of
Representatives passed the
Heroes Act, which included
explicit language that
would qualify co-ops for
PPP loans. Obviously, the
biggest hurdle was yet to
come—passing this legislation
in the United States Senate.
Thereafter, the PCCC worked
closely with New York Senator Chuck
Schumer’s office to ensure that any
stimulus package in the US Senate
would include co-ops in the PPP
Lending Program. Senator Schumer
met with the PCCC personally and
fought doggedly for our co-op residents
to ensure that co-ops were included in
any further stimulus package. On Dec.
21, 2020, Senator Schumer announced
that co-ops would finally become
eligible for forgivable PPP loans as
part of the new $900 billion stimulus
package hammered out by House and
Senate. Finally, on Dec. 27, 2020, this
legislation was signed into law by the
President.
Co-op residents throughout the City
are relieved that they can now enjoy
some financial relief because of this
important program. “Co-ops are facing
the same severe revenue problems
as other business concerns. They
are suffering declining revenues and
increased expenses. It was a critical
victory that they are now included in
the PPP program,” said Bob Friedrich,
Co-President of the PCCC. “As a
result of this injustice, the PCCC,
along with co-op advocacy groups
across the nation, made their voices
heard loud and clear in Congress,”
added Warren Schreiber, co-President
of the PCCC.
At this point, the bill will require
the issuance of guidelines from the
Small Business Administration, which
is expected sometime in January, 2021.
It will be at that time that co-ops will
be able to discern if they meet all eligibility
requirements. Time will tell the
true effects of this legislation on the
co-op community, but the passage of
this legislation on the national stage is
the result of the hard work and determination
of the efforts of the Queens
co-op owners who fought so diligently
on this issue.
/WWW.QNS.COM
