Although disaster loan assistance is available for up to $2 million, the EIDL for COVID-19 was capped at $150,000. list of mortuary science schools in kenya. Any forgiven PPP loan proceeds do not need to be reported as gross income by the borrower for federal and state income taxes. Real estate agents can use SBA 7(a) loans for buying or maintaining a vehicle, refinancing business debt, and expanding a real estate brokerage. If a Schedule C filer elects to use gross income to calculate its loan amount on a First Draw PPP Loan, and the borrower reported more than $150,000 in gross income on the Schedule C that was used to calculate the borrowers loan amount, the borrower will not automatically be deemed to have made the statutorily required certification concerning the necessity of the loan request in good faith, and the borrower may be subject to a review by SBA of its certification. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. An attestation that the loan was used in compliance with the law. Normal operating expenses generally dont go on that form unless they are past due, http://sbaloanforms.com/blog/sba-form-2202-schedule-of-liabilities.html. The tests cover such subjects as forms of ownership, physical descriptions, valuation and regulation. FAQs: Small Business Administration (SBA) Loans and Grants for Brokers, California Small Business COVID-19 Relief Grant Program. 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. Its also important to understand that if you do pledge collateral, youre placing a lot of temporary restrictions on your business including the stipulation that while your loan is still outstanding, you cannot sell, lease, or transfer any collateral that was used as a loan guarantee without the approval of the SBA. Since then "crickets", and no $$$ in my bank account. Construction and Real Estate, All independent contractors and sole proprietors without employees will be able to use this short certification form, since their loans were capped at $20,833. Once approved, money is usually transferred to your bank account, using the banking information that you provided in the application. What assistance is available for brokers from the SBA? PPP loans will have a non-compounding and non-adjustable 1.00% fixed interest rate. Head to the COVID Legal Documents page on car.org for access to: Step-by-Step Guide to PPP Loan Forgiveness for Borrowers With Employees, Step-by-Step Guide to PPP Loan Forgiveness for Borrowers Without Employees. The estimated amount of the loan used for payroll costs. The SBA is launching a new round of economic injury disaster loan (EIDL) Advances called Targeted EIDL Advance which provides eligible businesses with Any EIDL Advance Amounts previously deducted from a borrowers forgiveness amount will be remitted to the lender, together with interest to the remittance date. WebLearn critical details of the benefits offered to real estate agents including: Unemployment Benefits, Economic Disaster Loans/Grants (EIDL) and the Payroll Protection Program %PDF-1.6 % Will my PPP loan forgiveness be reduced if I lay off employees or reduce their salaries? Calculating how much youre entitled to as an independent contractor has a formula to it. If the eligible entity has previously applied for EIDL assistance on or before December 27, 2020 but has not yet received an EIDL advance, the entity will be eligible to receive a grant of $10,000. If the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for the 24 months of economic injury up to a maximum of $500,000. How will this affect forgiveness? Do I need to submit any additional supporting documentation with my loan forgiveness application? This means real estate industry PPP loan borrowers should be able to qualify for the EZ Version of the loan forgiveness application if they didnt reduce employee salaries by more than 25% during the Covered Period. According to the Wall Street Journal, it usually takes SBA around one month to process a 7(a) loan. Our accounting firm speculates it could be another 3-4 weeks. Learn more about this loan, including qualifications and how to apply. Do I need to report my receipt of PPP loan proceeds to the EDD if I am receiving PUA or UI benefits? Before taking out a loan, be sure to speak with a qualified commercial real estate broker to discuss all of the risks and benefits associated with this type of financing. buHX M@B `l&FZ#R ?a In order to receive a second draw PPP loan, a borrower must: Employ not more than 300 employees. From March 25 to March 31, there will be another application round where businesses that have not yet applied for a grant will be permitted to apply. If you need assistance completing the PPP application, C.A.R. 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. Most brokers are likely to be eligible for loans which are being made available through the SBA. For utility payments: Copy of invoices from February 2020 and those paid during the Covered Period and receipts, cancelled checks or account statements verifying those eligible payments. 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/. If your business has been hurt by COVID-19, it may be worth applying for an EIDL loan. As long as you did not receive a larger PPP loan than you are eligible for, this should not have any impact on loan forgiveness. They want to know all of your debts. You'll probably be fine. C.A.R. Between March 2020 and February 2021, SBA provided about 3.8 million low-interest EIDL loans and 5.8 million grants (called advances) totaling $224 billion to help The EIDL has a 30-year repayment plan, and there is no prepayment penalty if you decide to pay early. https://careliefgrant.com/wp-content/uploads/2020/12/FOR-WEBSITE-ONLY-CRG-All-Businesses-Program-and-Application-Guide-Public.pdf. Most real estate brokers and real estate firms are therefore likely to qualify. No. Like any loan, there are disadvantages to obtaining an EIDL loan, so its up to you to determine whether the advantages outweigh the disadvantages. Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, a copy of the borrowers quarterly income statements or bank statements. Eligible rent costs include payments for rent obligations on real or personal property under a leasing agreement in force before February 15, 2020. Step 4: Add the outstanding amount of any EIDL made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid). Are expenses paid with forgiven PPP loan proceeds deductible from my federal and state income taxes? All Rights Reserved. Commercial Real Estate Loans,SBA7a Loans, Many major lenders are currently only assisting borrowers who already have a business checking account with them. The expanded Covered Period permitted by the PPP Flexibility Act increases the amount eligible for forgiveness to business owners for cash compensation paid to employees. These are sample forms which illustrate the information you will need to apply for a PPP loan. However, EDD suggests it is safer to do so. Please refer to the Targeted EIDL Advances section below for more information. The SBA is only allowing the gross income formula to be used for loans approved on or after March 3, 2021. 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. Many brokers structure their businesses as S Corporations and pay themselves salaries from the corporations funds. To identify which program(s) youre eligible for, work with your lawyer and an accountant like Wipfli. Technology 2054 0 obj <>/Filter/FlateDecode/ID[<8C8FAFB2856FD243BB76F15BC6E77F5A>]/Index[2030 41]/Info 2029 0 R/Length 108/Prev 228727/Root 2031 0 R/Size 2071/Type/XRef/W[1 2 1]>>stream What are the risks if I do? The full amount of the loan can be up to $500,000, with interest rates of 3.75% for for-profit businesses. company. 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. Other SBA loan options include SBA express loans and SBA microloans. Collateral can include assets such as inventory and equipment as well as intangible assets such as trademarks and copyrights. Loans are for a term of 30 years. We will continue to update this FAQ as any rules or other guidance are provided. Will this affect my PPP application? If your loan was too high (for example, if you received more than $20,833 despite not having any employees), then it might not be possible to obtain full forgiveness. If the eligible entity received an EIDL advance earlier under the CARES Act, the targeted advance allows the entity to receive an amount equal to the difference of what the entity received under the CARES Act and $10,000. 6401 Congress Ave Ste 250Boca Raton FL 33487 Apartment Loans,HUD Loans, Nevertheless, there are ways for borrowers to achieve full PPP loan forgiveness even if they do not fully restore their workforce. I have yet to see an actual list of ineligible codes, but "Real Estate Developer" is for sure on the list as ineligible, you want to make sure you can be distinguished from that. The Economic Injury Disaster Loan or EIDL is designed for businesses with fewer than 500 employees. Press inquiries may be directed to Media Relations. But what if we told you that the, The Commission Calculator is Available NowWe love the holidays at the Paperless Agent. You could, if desired, get a PPP loan to cover payroll costs (defined below) and other costs that are forgivable under the PPP, and then get an EIDL loan to cover some of your other expenses. The best option is to contact the lender to arrange returning any portion of the loan in excess of what can be forgiven. This website does not endorse or charge you for any service or product. The SBA requires that at least 75% of the PPP loan be spent on payroll, while the remaining 25% can be spent on expenses such as utilities, rent, mortgage interest and other debt obligations. The grant amount will be based on the businesss annual revenue as documented in its most recent tax return. Below are some resources and links that you can use to find a PPP lender. What happens if I previously had an EIDL advance deducted from my PPP loan forgiveness? Thank you SIC code 6531 isnt even right for my biz but thats what NAV shows so I guess thats what they will use. We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. If this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero. A real estate agent has called out her landlord clients for jacking up the rent too much, with stunned tenants welcoming the 'brutal truth' of her comments. Refinancing business debt: If youve taken out a small business loan to fund your business, and the debt is currently on unreasonable terms (i.e. There are 2 programs, that we can take advantage of as real estate agents, that allow us to continue to operate despite what's going on: Economic Injury Disaster This second loan is called a second draw PPP loan.. How can I apply for a targeted EIDL advance? The loan quote represents the amount that youre qualified to borrow, but you can change the amount when you electronically sign the application. Additionally, the American Rescue Plan created a new supplemental targeted advance program. Check with your lender to determine if you will be required to submit a paper version of the application or if the lender will be offering an electronic application. For the loan to be fully forgivable, any PPP loan proceeds that are not spent on payroll costs must be spent on certain non-payroll costs: namely, mortgage interest payments, rent, operations expenditures, property damage costs, supplier costs, worker protection expenditures, and utilities. What happens if any portion of my PPP loan is not forgiven? The following options are available to brokers: Are California Relief Grants available for brokers from the state of California? PPP loans are 100% guaranteed by the government through September 30, 2021. Where can I find more information about EIDLs? Were also here to help you navigate the uncertainty of the COVID-19 pandemic and its impact on your finances and business.
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