Many senior living operators overwhelmed by the financial fallout of the coronavirus pandemic have been taking advantage of the federal government’s Paycheck Protection Program, according to data compiled by specialty investment bank Ziegler. In the first round of the PPP, which opened April 3, the firm reports that at least 84 senior living operators applied for more than $195 million in loans through approximately 45 banks. 

The average loan request among senior living operators was for $2.3 million, with the maximum request topping out at $8.1 million. The smallest loan request was for $213,000.

The firm currently is compiling data on the amount of money senior living operators actually have received through the program’s first round of funding, as well as gathering info on operators who put in loan requests during the PPP’s second round of funding, which opened April 27.

“It’s highly likely that the number of senior living participants is higher, but we just weren’t able to capture all of them,” said Rich Scanlon, senior managing director of Ziegler.

Scanlon noted that operators should be sure to continue involving their accountants and attorneys in the PPP process, as well as work closely with their lenders to ensure they follow all the proper procedures to help maximize the probability of having the loan forgiven. Investors as well as the federal government are paying close attention to how borrowers are accessing PPP loans, he added. Treasury Secretary Steven Mnuchin, for example, has warned that the Small Business Administration will audit any company taking out more than $2 million from the PPP before that loan is forgiven. 

“There’s no such thing as free money, especially where the government is concerned,” Scanlon noted. “Accurate record keeping and adherence to PPP requirements are critical to minimize potential for loans not to be ‘forgiven’ as borrowers anticipate.”