Reed Smith Client Alerts

The CARES Act will provide hundreds of billions of dollars in benefits to businesses impacted by the coronavirus pandemic. However, landlords that have large real estate holdings but relatively few employees may be limited in their ability to obtain relief through some of the key provisions of the CARES Act. Nevertheless, other aspects of the CARES Act, and actions taken at the federal and state levels, could provide landlords with the care they need to get through the pandemic.

A centerpiece of the CARES Act is the Paycheck Protection Program (the PPP), a $350 billion tranche meant to assist small businesses that retain their workforce by providing forgivable loans if certain conditions are met. However, the PPP was not expressly designed for landlords with sizable real estate holdings whose businesses often have small numbers of direct employees. This Alert focuses on:

  • CARES Act provisions that can assist landlords;
  • Parts of the PPP that might benefit landlords; and
  • Certain actions taken outside of the CARES Act (either by state governments or by agencies of the federal government) that may bring financial relief to landlords concerned about their mortgages.