Our accounting firm speculates it could be another 3-4 weeks. Below are some resources and links that you can use to find a PPP lender. There are some exceptions, such as for a business with more than 500 employees that is considered small under SBA Size Standards. How do real estate firms calculate their maximum PPP loan amount? Good morning! The SBA is only allowing the gross income formula to be used for loans approved on or after March 3, 2021. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. 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. When can I submit my loan forgiveness certification or application? A streamlined online application for EIDL loans has been made available by SBA at the following link: Applications for the program must be submitted through a Community Development Financial Institution (CDFI) that has partnered with the state of California to distribute the funds. They want to know all of your debts. The program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses (including independent contractors and sole proprietors) impacted by COVID-19 and the related health and safety restrictions. Do I need to report my receipt of PPP loan proceeds to the EDD if I am receiving PUA or UI benefits? The SBA is launching a new round of economic injury disaster loan (EIDL) Advances called Targeted EIDL Advance which provides eligible businesses with Real Estate Agents and Managers Must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business. Supplier costs of perishable goods can be made before or during the life of the loan. 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. 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. I am a Paperless Agent member. 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 SBA will, subject to any SBA review of the loan or loan application, remit the appropriate forgiveness amount to the lender, plus any interest accrued through the date of payment, not later than 90 days after the lender issues its decision to SBA. 2070 0 obj <>stream For additional information on the COVID-19 EIDL loan program, visit Tafts COVID-19 Toolkit for articles provided by Tafts SBA Task Force. They are currently available to small businesses with fewer than 500 employees, including sole proprietors, independent contractors and other self-employed individuals. Alternatively, you can submit lessor account statements from February 2020 and from the Covered Period through one month after the end of the Covered Period verifying eligible payments. Most brokers are likely to be eligible for loans which are being made available through the SBA. For a complete FAQ about the California COVID-19 relief grant program, please refer to this page: https://careliefgrant.com/50440-2/. To apply for a PPP (Payroll Protection Plan), you must go through an approved SBA loan provider. An eligible entity must be: (i) located in a low-income community; (ii) have suffered an economic loss of greater than 30 percent; and (iii) employ not more than 300 people (sole proprietors and independent contractors are also eligible). Thank You so much. To identify which program(s) youre eligible for, work with your lawyer and an accountant like Wipfli. Using line 7 gross income will usually lead to a higher loan calculation, so it will be preferred for most sole proprietors. Applications will be reviewed to determine whether the applicant meets the eligibility requirements. For C-corporation owner-employees, owner income replacement is capped at 2.5 times their average monthly 2019 or 2020 employee cash compensation and employer retirement and health insurance contributions made on their behalf. CARES Act II provides that EIDL advances will no longer be deducted from PPP loan forgiveness. There are thousands of banks that already participate in the SBAs lending programs, including numerous community banks. How will this affect forgiveness? How much money can I borrow with an EBL, and what are the terms of the loan? Because of the current application backlog, application approvals are likely to be significantly delayed. 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/. Alternatively, you can submit lender account statements from February 2020 and the months of the Covered Period through one month after the end of the Covered Period verifying interest amounts and eligible payments. Payroll costs do not include compensation to agents who are independent contractors. Therefore, please keep in mind that it is not certain you will receive a grant even if you apply and meet all eligibility requirements. We recommend putting the PPP loan funds into a separate bank account to make it easier to track them. As an Ebby Halliday client, youll benefit from knowledgeable, respected agents and a team of trusted professionals dedicated to making buying or selling your The advance face value is Use r/TargetedEIDL for advance/grant issues. The contractor must have been engaging in business when the declared disaster commenced and must meet all other 7(a) loan eligibility requirements. Press question mark to learn the rest of the keyboard shortcuts. Payment deferment means that you are not required to immediately begin making payments to the lender. The list of partners, organized by location and by language services, can be found here. In this case, we would recommend looking into the EIDL program instead. Since real estate agency is a personal service business (which makes cost of goods sold inapplicable for most brokers), brokers should typically be able to use gross income or total income (for a firm) to determine their gross receipts for a quarter. Its a time for family, friends and creating lasting memories. Copyright, Trademark and Patent Information, An individual who operates as a sole proprietorship or as an independent contractor, A private nonprofit organization that is a nongovernmental agency or entity, Any illegal activity as defined by the federal government, Any activities of a prurient sexual nature, Earning more than one-third of its gross income from legal gambling activities. WebComplimentary Self-Defense Class for Real Estate Agents happening at David Hoffman Realty, 10715 Sikes Place, Charlotte, United States on Tue Mar 07 2023 at 10:00 am to Borrowers should calculate their maximum loan based on both options to determine which option will provide them with the largest maximum loan. A default loan term of 2 years for loans dispersed prior to the enactment of the PPP Flexibility Act, and 5 years for loans dispersed after the enactment of the PPP Flexibility Act. Get Quotes. The funds can be used for land, improvements, construction, retrofitting, and more. ($100,000 12 * 2.5). 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. Since then "crickets", and no $$$ in my bank account. The SBA has an online guide, which is available here: https://www.sba.gov/funding-programs/disaster-assistance. For annual revenues greater than $100,000 up to $1,000,000, the available grant amount is $15,000. Additionally, borrowers can obtain full loan forgiveness if they were unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to COVID-19 related operating restrictions, as long as they do not reduce salaries or hourly wages by more than 25 percent for any employee during the Covered Period compared to the period between January 1, 2020 and March 31, 2020. SBA 504 loans are intended for the purchase and construction of owner-occupied commercial real estate, not working capital, and are typically offered at much lower interest rates than 7(a) loans. The full amount of the loan can be up to $500,000, with interest rates of 3.75% for for-profit businesses. 6401 Congress Ave Ste 250Boca Raton FL 33487 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. Required fields are marked *. Must be impacted by COVID-19 and the health and safety restrictions such as business interruptions or business closures incurred as a result of the COVID-19 pandemic. WebComplimentary Self-Defense Class for Real Estate Agents happening at David Hoffman Realty, 10715 Sikes Place, Charlotte, United States on Tue Mar 07 2023 at 10:00 am to 12:00 pm. Can I receive a targeted EIDL advance if I have not yet applied for an EIDL? Check with your lender for specific details on how they will accept applications. The grant amount will be based on the businesss annual revenue as documented in its most recent tax return. Cybersecurity PPP loans will have a non-compounding and non-adjustable 1.00% fixed interest rate. How much money can I borrow with a PPP loan? WebTake this free practice test to see how prepared you are for a real estate agent certifying exam. Click here to read our full review for free and apply in just 2 minutes. Additionally, many financial technology (FinTech) companies have started processing PPP loan applications. Are these grants still available? Personal finance. SBA will loan borrowers up to $2 million for an initial PPP loan and up to $2 million for a second draw PPP loan. Though SBA disaster loans have been available for years, the EIDL was signed into law in March of 2020 as part of the CARES Act, which was passed by Congress to provide emergency relief to American workers and small businesses struggling to survive due to the impact of COVID-19. Image source: Author. Yes but borrowers cannot take out an EIDL and a PPP loan for the same purposes. 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. If you run a larger brokerage that wants to use an SBA loan to purchase (or even build) a new headquarters, an SBA 504 loan could be a superior option. Before you agree to a loan, be sure that you are aware of and understand EIDL loan terms and requirements adequately. What Types of Homeowners Insurance Policies Are Available? SBA Covid-19 EIDL Loan Collateral and Personal Requirements SBA Covid-19 EIDL Loan Collateral and Personal Guarantee Requirements Address: 1016 E Osceola Parkway, Kissimmee, 34744, Florida, United States Phone: 407-502-2400 E-mail: info@freedomtaxfl.com Freedom Immigration Freedom Insurance & Financial The Act extends the deadline to apply for a PPP loan to May 31, 2021. More information about PPP loan forgiveness can be found in the Loan Forgiveness section of the FAQ. This loan program can be used to build your real estate office, purchase commercial real estate, modernize facilities, improve energy efficiency, and more. In addition to revising the. Will I need to pay income tax on the PPP loan proceeds if I use the proceeds for income replacement? After 14 Days it's just $67/month! However, it is possible the state law will be changed to conform with the new federal law. Nevertheless, there are ways for borrowers to achieve full PPP loan forgiveness even if they do not fully restore their workforce.