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Rentals with No Employees Eligible for PPP Loans

Real Estate Rental PPP Loan

Would an LLC which only held real estate and had no employees, be eligible for a PPP loan?

Given that the entity certified that the COVID-19 virus has placed the rental activity in jeopardy and that there existed a severe liquidity crisis where no other sources of funds were available, they could apply for a PPP loan. But, all of the funds are required to be used solely for approved expenses (e.g., mortgage interest, rent/lease payments, utilities, etc.). And, as far as any possible forgiveness of this PPP loan, since this entity would not result in any self-employment income, there would be no chance for the loan to be forgiven.

Technically, since there are no “payroll costs,” when you divide this zero amount by .75 (or, .60 if the recent House proposal becomes law), the result is also “zero,” which is the amount allowed to be spent on those no “approved costs” that would be eligible for PPP loan forgiveness.


Authored by:

Dr. John Connors, JD, CPA, LLM

Tax Educator’s Network, LLC


For subscription information on Dr. John Connors’ educational materials, click here.