Gill Properties is one of 49,000 real estate companies that had been approved for the Paycheck Protection Program (PPP), as of April 13.
While principal Brown Gill said the company is doing fine so far, he said the subsidy will help the company get through a rough summer.
“This [crisis] hits landlords in April, but it really hits landlords in May, June, July,” Gill said. “As each month progresses, [our tenants] are going to hurt more and more … [and] won’t be able to pay their fixed expenses.”
Gill said the company expects to collect 60% of its normal rental revenues in April.
The company offered almost all of its tenants the option to pay half their rent for April and May and then amortize that amount over the 12 months of 2021. It received a mix of responses to the offer: some tenants accepted, some said they wouldn’t pay any rent, and some wanted to pay in full so they wouldn’t fall behind.
Gill was particularly excited by the response his Five Guys Burgers and Fries contact gave him April 13.
“He said they received their PPP, so would be paying [all of their] rent,” Gill said. “That was a real breath of fresh air.”
Gill Properties hasn’t yet received its own PPP money, Gill said, as it wasn’t approved until April 13. It had originally given BancorpSouth its information on April 3, but it had to update its application three times.
To avoid such a long process, Gill advised others applying for the program to work with a banker they know well and give as much information as possible on the front end.