The SBA, as administrator for the CARES Act, apparently took the position on April 3, that not-for-profit community associations within our country would not be eligible for the Paycheck Protection Program (PPP) loans or grants because of its determination that community associations (except those operating commercial, resort club or mixed-use communities) are not “businesses,” I vehemently disagree with its conclusion.

Community association operations clearly constitute a “business” by definition. They collect revenue through member assessments; they sometimes generate incidental income via other means; and, they incur substantial operational expenses for matters such as property and liability insurance, security, repairs and maintenance, supplies, landscaping, utilities, professional fees and management fees. Community associations, depending on their size, often have a significant number of employees and staff.