Businesses that have experienced substantial economic injury are eligible for an EIDL. Any EIDL Advance Amounts previously deducted from a borrowers forgiveness amount will be remitted to the lender, together with interest to the remittance date. Like any loan, there are disadvantages to obtaining an EIDL loan, so its up to you to determine whether the advantages outweigh the disadvantages. Note: For second draw PPP loans, sole proprietors have the option of calculating average monthly payroll costs based on the 1-year period before the date on which the loan is made rather than the 2019 calendar year. Standard SBA Loans are not available for passive income (except Hotels and Self Once approved, money is usually transferred to your bank account, using the banking information that you provided in the application. Get referrals from family or friends who have used an agent or look for one who is active in the neighbourhood in which you are selling or buying. abnormally high interest rates or fees), you may be able to use an SBA 7(a) loan to refinance it. If your business has been hurt by COVID-19, it may be worth applying for an EIDL loan. (office fees, advertising, cellphone, high speed internet, licensing fees, and real estate board fees?). Employees will likely need to pay income tax on the loan proceeds they receive, although the IRS has not yet issued any formal guidance on this. Eligible costs are only those costs incurred due to the COVID-19 pandemic and the health and safety restrictions such as business interruptions or business closures incurred as a result of the COVID-19 pandemic. Please refer to the Targeted EIDL Advances section below for more information. The full amount of the loan can be up to $500,000, with interest rates of 3.75% for for-profit businesses. PPP loan proceeds, EIDL advances, and direct payments from the IRS (e.g., tax refunds, rebates, stimulus or economic impact payments pursuant to the CARES Act) should not be included in gross receipts. We are a technology company that uses software and experience to bring lenders and borrowers together. For rent or lease payments: Copy of current lease agreement and receipts of cancelled checks verifying eligible payments from the Covered Period. These lenders will be handling the PPP application process. Great to put this video instruction and helping out. Any other COVID-19 related expenses not already covered through grants, forgivable loans or other relief through federal, state, county or city programs. For more information on SBA 7(a) loans, please visit https://www.sba7a.loans/sba-7a-loans-small-business-blog/how-do-commercial-real-estate-loans-work. Paypal https://www.loanbuilder.com/ppp-loan-support, Kabbage https://www.kabbage.com/paycheck-protection-program-loans/, Divvy https://getdivvy.com/covid-19/sba-ppp-loans/assistance/, Credibly - https://sba.credibly.com/apply-online/?utm_medium__c=cpc&utm_source__c=google&utm_campaign__c=11-seg-brd-des&utm_term__c=11_bmm_credibly&utm_content__c=easy_responsive, Lend IO / Paychex https://www.lendio.com/, Biz2Credit.com / Paychex (may be requiring 2 or more employees) - https://www.biz2credit.com/disaster-support/cares-act-loans-coronavirus, Union Bank - https://unionbank.avoka-transact.com/workspace/servlet/SmartForm.html?formCode=ppp-loan, Square Capital - https://squareup.com/us/en/l/sba-ppp-loans, Intuit Quickbooks - https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/, ReadyCapital - https://ppp.readycapital.com/. Rupal Shah, Your email address will not be published. Do I need to report my receipt of PPP loan proceeds to the EDD if I am receiving PUA or UI benefits? Must be an active business operating since at least June 1, 2019. The PPP also comes with usage restrictions. The companies will not pay C.A.R. Some real estate firms offer selling If you are considering applying for a PPP loan with one of these smaller lenders, here are some resources to locate a lender in your area. None of the information on this site constitutes legal advice. What assistance is available for brokers from the SBA? This means that a borrower that chooses to file before the end of the Covered Period cannot contact the lender at a later date to mitigate any salary reductions after the loan forgiveness application has been filed. Refer to www.sba.gov for full program details and coverage. Community Banks, Credit Unions and Community Development Financial Institutions**, Search for community banks based on your Zip Code: https://www.icba.org/about/find-a-community-bank, List of credit unions in California: https://www.creditunionsonline.com/california-credit-unions.html, List of community development financial institutions (Excel spreadsheet that you can sort to list California institutions): https://www.cdfifund.gov/Documents/CDFI%20Cert%20List%2004-14-2020%20Final.xlsx, List of 2019 Top 100 U.S Small Business Administration (SBA) Lenders: https://www.sbalenders.com/most-active-sba-banks-in-2019-mid-year-review/, SmartAsset.com evaluation of PPP lenders: https://smartasset.com/insights/ppp-loan-lenders. Real-estate brokers, are you looking for clarity around what help youre eligible for during the COVID-19 crisis? The SBA is only allowing the gross income formula to be used for loans approved on or after March 3, 2021. If your loan was $50,000 or less, then your forgiveness will not be reduced even if you lay off employees or reduce their salaries during the Covered Period. On May 4, the SBA opened EIDL applications to agribusinesses, which suggests that afterwards they will likely reopen applications to everyone else who is eligible. To apply for forgiveness of your PPP loan, you must complete the application and submit it to your lender. If the first disbursement is not made within 90 days from receipt of an SBA loan number, the EBL loan will be canceled. Low-income community is defined in the Internal Revenue Code as any population census tract where the poverty rate is at least 20 percent, or (i) in the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income; or (ii) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. Heres the simplified three-step process: Heres an example of the PPP loan calculation in action. PPP loan proceeds, EIDL advances, and direct payments from the IRS (e.g., tax refunds, rebates, stimulus or economic impact payments pursuant to the CARES Act) should not be included in gross receipts. If you don't have one. Borrowers with employees may have costs that fall into this category. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application. The two most common loan programs are the SBA 7(a) loan and the SBA 504 loan. No. Real-estate brokers, are you looking for clarity around what help youre eligible for during the COVID-19 crisis? A borrower is eligible for loan forgiveness for amounts the borrower spends during a period which begins on the date the lender makes the first disbursement of the PPP loan to the borrower and ends between 8 and 24 weeks after disbursement of the loan (the Covered Period). If you have additional expenses that will not be forgiven if spent with PPP loan proceeds, an Economic Injury Disaster Loan (EIDL) may be a good option. And once youre done, you just submit the application and wait for a response, which includes a loan quote. Calculating how much youre entitled to as an independent contractor has a formula to it. This is because 7(a) loans can be are incredibly flexible, and can used for working capital, equipment, and owner-occupied commercial real estate. There are strict guidelines about what you can and cannot use EIDL loans for. Many major lenders are currently only assisting borrowers who already have a business checking account with them. Will my PPP loan forgiveness be reduced if I lay off employees or reduce their salaries? Any forgiven PPP loan proceeds do not need to be reported as gross income by the borrower for federal and state income taxes. Right now, there are over 2 million Americans with active real estate licenses, and over 1.3 million members of the National Association of Realtors, Apply for a loan in minutes and get multiple quotes today In 2020, the CARES Act II reopened the PPP program for those who hadnt taken a PPP loan in the first round, as well as providing for the second draw PPP loans discussed below. As real estate agents, we are exactly who these legislations were designed to help. Lastly, and very importantly, the SBA instructs that before applying for a PPP loan, borrowers should consider whether their potential access to other sources of liquidity ultimately makes a PPP loan unnecessary to support their ongoing operations. Its time for you to get more listings, more leads, and sell more homes in the next 12 months than you did in the last 12 months. Businesses that were not in operation on or before February 15, 2020 are not eligible for second draw PPP loans. Many major lenders are currently only assisting borrowers who already have a business checking account with them. A borrower will now be able to receive forgiveness if the borrower signs and submits to the lender a one-page certification form. |, California REALTORS expect coronavirus to, https://www.sba.gov/paycheckprotection/find, https://www.loanbuilder.com/ppp-loan-support, https://www.kabbage.com/paycheck-protection-program-loans/, https://getdivvy.com/covid-19/sba-ppp-loans/assistance/, https://sba.credibly.com/apply-online/?utm_medium__c=cpc&utm_source__c=google&utm_campaign__c=11-seg-brd-des&utm_term__c=11_bmm_credibly&utm_content__c=easy_responsive, https://www.biz2credit.com/disaster-support/cares-act-loans-coronavirus, https://unionbank.avoka-transact.com/workspace/servlet/SmartForm.html?formCode=ppp-loan, https://squareup.com/us/en/l/sba-ppp-loans, https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/, https://www.icba.org/about/find-a-community-bank, https://www.creditunionsonline.com/california-credit-unions.html, https://www.cdfifund.gov/Documents/CDFI%20Cert%20List%2004-14-2020%20Final.xlsx, https://www.sbalenders.com/most-active-sba-banks-in-2019-mid-year-review/, https://smartasset.com/insights/ppp-loan-lenders. If this amount is zero or less, you are not eligible for a PPP loan. Webhttps://crumrealestate.comHere is information to help Independent Contractors get through the Coronavirus epidemic. Independent contractors who have been adversely impacted by the COVID-19 emergency are eligible. Eligible businesses will then be scored based on COVID-19 impact factors incorporated into the programs priority criteria, including the following: Geographic distribution based on COVID-19 health and safety restrictions following Californias Blueprint for a Safer Economy and county status and the new Regional Stay At Home Order; Industry sectors most impacted by the pandemic; and. The SBA is launching a new round of economic injury disaster loan (EIDL) Advances called Targeted EIDL Advance which provides eligible businesses with How do I calculate my maximum PPP loan amount if I am a sole proprietor with employees? Am I eligible for a PPP loan if I structure my business as an S Corp? Consult with your accountant if you need assistance determining your gross receipts, and/or refer to SBAs FAQ document available here. Right now, there are over 2 million Americans with active real estate licenses, and over 1.3 million members of the National Association of Realtors (NAR). We recommend putting the PPP loan funds into a separate bank account to make it easier to track them. by Mary Girsch-Bock | Before you agree to a loan, be sure that you are aware of and understand EIDL loan terms and requirements adequately. However, if your loan was greater than $50,000, the PPP Loan Forgiveness Application incorporates several formulas to reduce a borrowers loan forgiveness if the borrower laid off employees after receiving the PPP loan and/or if the borrower reduced employee salaries by more than 25% after receiving the PPP loan. Note: Since SBA allows borrowers to use 2019 or 2020 payroll costs to calculate their maximum PPP loan amount for both first and second draw PPP loans originating in 2021, borrowers will want to use the year in which their payroll costs were highest to obtain the largest PPP loan amount. For example, if youre looking to change your business structure from a sole proprietorship to an S corporation, you will first need the approval of the SBA. SBA express lenders are only allowed to make EBL loans to eligible borrowers with which the lender had an existing banking relationship on or before the date of the applicable disaster. Will I need to pay income tax on the PPP loan proceeds if I use the proceeds for income replacement? For businesses established after the second quarter of 2019, the SBA compares revenue from any 2020 quarter to revenue from the third or fourth quarter of 2019. While the SBA states that the application can be completed in around two hours, others have stated that it took them around 45 minutes to an hour to complete. If you need assistance completing the PPP application, C.A.R. Must be able to provide organizing documents including 2018 or 2019 tax returns or Form 990s, copy of official filing with the California Secretary of State, if applicable, or local municipality for the business such as one of the following: Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration or Government-Issued Business License. All rights reserved. Payroll costs do not include compensation to agents who are independent contractors. There is currently no official guidance from the EDD as to whether PPP loan proceeds need to be reported as income when you are certifying for PUA or UI. Eligible entities will be able to receive additional $5,000 grants through this program. Since the definition of payroll costs includes employee salaries, wages paid by an S Corporation will be considered payroll costs that can be covered by PPP loan proceeds. Will this affect my loan forgiveness? Eligible operations expenditures include payments for any software, cloud computing, and other human resources and accounting needs. WebCOVID EIDL Loans Information as of September 8, 2021 Contents Introduction Section 1: COVID EIDL Program Information Section 2: Submitting a New COVID EIDL Application A government guarantee reduces the risk to the borrower. The Covered Period cannot extend beyond September 30, 2021. Eligible utility costs include payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020. Please see the following statements C.A.R. Good morning! The actual loan size borrowers receive will be determined by a formula based on average total monthly payroll costs over a one-year period. If your financial projections are looking grim, it might be worth considering applying for an EIDL loan before the December 21, 2020, deadline arrives. Kind of a weird one. In response to the COVID-19 pandemic, the CARES Act established eligibility for two SBA loan programs: Section 7(a) Payroll Protection Program loans (PPP) and Your calculation would look like this: Please note, if your Schedule C business took a loss prior to the COVID-19 pandemic and you had no employees, you will not be considered to have a salary for this calculation. Real Estate Agents and Managers Eligible supplier costs include expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipients operations at the time at which the expenditure was made. WebOne Experience. EIDL loans carry a low interest rate and a 30-year repayment term and can offer a lifeline to struggling small businesses. When do I have to begin and end using PPP loan proceeds to qualify for forgiveness? Do I need to submit any additional supporting documentation with my loan forgiveness application? Yes, in some cases. Webrob stafford daughter chicago fire. Nevertheless, there are ways for borrowers to achieve full PPP loan forgiveness even if they do not fully restore their workforce. If a borrower is going to claim on the forgiveness application that they tried to rehire an employee but the offer was rejected by the employee, the borrower is required to inform the applicable state unemployment insurance office of the employees rejected rehire offer within 30 days of the employees rejection of the offer. Some PPP funding has been set aside for community banks, credit unions, and community development financial institutions. Your COVID EIDL monthly payments begin 30 months after you first received the funds (see your original loan note for that date). The one-page certification form requires the borrower to provide: The number of employees retained by use of the loan. Unlike the PPP loan, EIDL loan forgiveness is not an option. This may help you. Click below for a free, no obligation quote and to learn more about your loan options. Hope this helps! We will provide additional information and guidance if it becomes available. WebReal Estate Agent is a small business received COVID-19 Targeted EIDL Advance and Supplemental Targeted Advance from U.S. Small Business Administration (SBA), Office of Entrepreneurial Development. Consult with your accountant if you need assistance determining your gross receipts, and/or refer to SBAs FAQ document available, Once received, the loans may be used by brokers for payroll costs (including paid sick leave), employee salaries, insurance premiums (including health, group life, vision, and dental insurance premiums), rent expenses, mortgage expenses, utility expenses, PPE expenses, operations expenses, property damage costs, supplier costs, and other debt obligations. These are sample forms which illustrate the information you will need to apply for a PPP loan. The advance face value is All states require real estate agents to be licensed by the state to engage in the sale of real estate. She previously worked as an accountant. The following are the eligible uses of grant funds: All employee expenses including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums; Working capital, overhead (including rent, utilities, mortgage principal and interest payments (excluding mortgage prepayments)), debt payments (principal and interest) incurred before March 1, 2020; Costs associated with re-opening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures; Costs associated with complying with COVID-19 federal, state or local guidelines for reopening with required safety protocols, including but not limited to equipment, plexiglass barriers, outdoor dining, PPE supplies, testing, and employee training expenses; or. Technology If you need assistance finding a PPP lender, SBA has created a Lender Match tool that allows you to search for lenders based on your Zip Code:https://www.sba.gov/paycheckprotection/find. We have not reviewed all available products or offers. CMBS Loans, Right now, the EIDL can cover up to six months of working capital or operating expenses, with a cap of $150,000, provided that your business qualifies. All users should perform their own due diligence and research. Tax forms (or equivalent third-party payroll service provider reports for the periods that overlap with the Covered Period. The real estate industry was adversely affected by statewide and local orders that were put in place in response to the COVID-19 pandemic. If you're using thewrong credit or debit card, it could be costing you serious money. How will I be able to obtain forgiveness for my PPP loan? The EIDL loan application is streamlined for easy completion. Proceeds must be used for purposes approved by the SBA, which include: Improvements to property such as utilities, parking lots, street enhancements, and landscaping, Constructing new facilities or modernizing/renovating existing facilities, Buying machinery and equipment for long-term use.