LOCH SHELDRAKE -- The COVID-19 pandemic has prevented SUNY Sullivan from housing students on campus. The result? No revenue. However, the cost of dorm operation remains.

At a special meeting last week, the Sullivan County Community College Dormitory Corporation made a move that will provide temporary financial relief.

A loan from the Small Business Administration's (SBA) Emergency Assistance Program, “... will allow us to keep the heat on, the lights on and the building operational until such time that we can again have students in residence and begin collecting rent from them,” said SUNY Sullivan President Jay Quaintance.

The term of the $150,000 loan is 30 years at a 2.75 percent interest rate. It accrues interest during the year, but no payments are needed for 12 months, at which time the college would begin paying it back.

It was explained that even at the bare minimum, the dorm costs between $8,000 and $11,000 a month (depending on the heating oil bill).

In addition to operational costs, there's also payments on the dorm's mortgage with Sterling National Bank which has a principal balance of over $6 million. Interest payments alone are about $23,000 a month.

The mortgage had been deferred for six months, but that window recently expired. The college has been trying to get another forbearance on the mortgage, but Quaintance said in his last conversation with one of the bankers, they didn't have a lot of confidence the college would get it.

“But as we have absolutely no revenue, he was certainly willing to take that to the board,” said Quaintance. “So … I think it's anybody's guess. But I do believe that this [the SBA loan] will at least get us to the point where we can again see revenue.”