If you only have a personal checking account, these lenders will still not accept your PPP application. Borrowers with loans greater than $150,000 will need to determine whether they can use the EZ version of the forgiveness application or if they must fill out the full version. Any other COVID-19 related expenses not already covered through grants, forgivable loans or other relief through federal, state, county or city programs. Because the cap limit is $100,000, if your net profit is over that, you have to reduce it to $100,000. However, keep in mind that EIDLs (with the exception of targeted advances) are conventional loans and not forgivable. Kind of a weird one. 2030 0 obj
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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. You can borrow up to $25,000, which can be used for disaster-related purposes to support the survival and/or reopening of your business. For small businesses impacted by COVID-19, an EIDL offers some distinct advantages that you should take into account when deciding whether to pursue the loan. If you would like to submit content or write an article for the Real Estate & Land Use Section, please email Kara Sikorski at ksikorski@indybar.org. C.A.R. All Rights Reserved. But what if we told you that the, The Commission Calculator is Available NowWe love the holidays at the Paperless Agent. Option 1: Economic Injury Disaster Loans (EIDL) Businesses with 500 or fewer employees including sole proprietors, independent contractors and cooperatives Also, you will want to determine if the lender has a specific timeline indicated in its written materials that promises to provide a response when you submit an application request. For businesses established after the third quarter of 2019, the SBA compares revenue from any 2020 quarter to the fourth quarter of 2019. Complimentary Self-Defense Class for Real Estate Agents. Real estate agents See our step-by-step guide on applying for an EIDL. 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. Businesses with fewer than 500 employees including sole proprietors, independent contractors, and other self-employed individuals all qualify for initial PPP loans. Some PPP funding has been set aside for community banks, credit unions, and community development financial institutions. Press J to jump to the feed. If the lender determines that the borrower is entitled to forgiveness of some or all of the loan amount, the lender must request payment from SBA at the time the lender issues its decision. No contract, cancel at any time. 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. The companies will not pay C.A.R. Your business structure must remain the same for the life of the loan. I received an email for a loan processor asking for a couple of things from me. Nevertheless, there are ways for borrowers to achieve full PPP loan forgiveness even if they do not fully restore their workforce. WebAs of September 8, 2021, new COVID-19 EIDL policy changes took effect as follows: Maximum loan cap increased from $500,000 to $2 million. As an Ebby Halliday client, youll benefit from knowledgeable, respected agents and a team of trusted professionals dedicated to making buying or selling your 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. 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: Because of the new legislation, independent contractors and sole proprietors now qualify to take advantage of these programs! Regardless of whether you have filed a 2019 or 2020 tax return with the IRS, sole proprietors must provide the 2019 or 2020 Form 1040 Schedule C (depending on which year you used to calculate your maximum loan amount) with your PPP loan application to substantiate the applied-for PPP loan amount. Our accounting firm speculates it could be another 3-4 weeks. Questions for the Real Estate and Construction Members should expect that reporting PPP loan proceeds will reduce benefits for those weeks. To identify which program(s) youre eligible for, work with your lawyer and an accountant like Wipfli. Business finance ** C.A.R. Many EIDL Loans Will Cause Disaster For Unassuming between $1,000 - $9,000) and will later reach out to those who applied for EIDL assistance on or before December 27, 2020 but did not receive an EIDL advance due to lack of program funding. More information about PPP loan forgiveness can be found in the Loan Forgiveness section of the FAQ. Real estate brokers: Can you qualify for a PPP loan? And 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. are not eligible for multiple grants and are only allowed to apply once using their eligible small business with the highest revenue. "Payroll costs" include net profit of independent contractors. WebWe have been helping real estate agents and title companies with their foreign national clients for almost 20 years. How Much Does Home Ownership Really Cost? Lets say you have a regular, ongoing sole proprietorshipwith no employees, and your businesshas been in operation for at least a full year. Many major lenders are currently only assisting borrowers who already have a business checking account with them. This loan program can be used to build your real estate office, purchase commercial real estate, modernize facilities, improve energy efficiency, and more. The following options are available to brokers: Are California Relief Grants available for brokers from the state of California? Step 2: Calculate the average monthly gross income or net profit amount (divide the amount from Step 1 by 12). Great to put this video instruction and helping out. endstream
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<. Any thoughts on what to do here? ", For the Emergency Injury Disaster Loan (EIDL):This loan is very different from the Payroll Protection Plan (PPP) because there are very specific things you can cover with this loan. Generally, receipts are considered total income (or in the case of a sole proprietorship, independent contractor, or self-employed individual gross income) plus cost of goods sold, and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms. The real estate industry was adversely affected by statewide and local orders that were put in place in response to the COVID-19 pandemic. Borrowers with loans under $150,000 who fill out the short-form certification will not need to submit additional documentation to obtain forgiveness. Am I eligible for a PPP loan if I structure my business as an S Corp? A borrower may submit a loan forgiveness certification or application any time on or before the maturity date of the loan, including before the end of the Covered Period, Since this amount (whether you used the gross income or net profit loan calculation method) is equivalent to the maximum PPP loan size for borrowers without employees, these borrowers are able to classify 100% of their PPP loan proceeds as forgivable payroll costs.. 0
Schedule of liabilities for a real estate agent . The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. Because PPP is an expansion of the already-existent 7(a) program, the financial institutions that offer 7(a) loans will be offering PPP loans as well. However, EDD suggests it is safer to do so. Thats why the EIDL loan application is such a pleasant surprise. The Economic Injury Disaster Loan or EIDL is designed for businesses with fewer than 500 employees. To apply for an EIDL (Economic Injury Disaster Loan). The actual loan size borrowers receive will be determined by a formula based on average total monthly payroll costs over a one-year period. And because the SBA requires you to save the receipts of any purchases made with EIDL loan monies, you must track these purchases properly. If the first disbursement is not made within 90 days from receipt of an SBA loan number, the EBL loan will be canceled. Entities eligible for a supplemental targeted advance will be able to receive an additional $5,000 grant. However, it is possible the state law will be changed to conform with the new federal law. Formula for firms to determine eligible loan amount: Step 1: Compute 2019 or 2020 payroll by adding the following: 2019 or 2020 gross wages and tips paid to your employees whose principal place of residence is in the United States computed using 2019 or 2020 IRS Form 941 Taxable Medicare wages & tips (line 5c- column 1) from each quarter plus any pre-tax employee contributions for health insurance or other fringe benefits excluded from Taxable Medicare wages & tips; subtract any amounts paid to any individual employee in excess of $100,000 annualized and any amounts paid to any employee whose principal place of residence is outside the United States; and. In fact, this card is so good that our experts even use it personally. What expenses can I spend the PPP loan proceeds on if I want the loan to be forgiven? 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. According to the New York Times, it typically takes one to two weeks for the SBA to make a decision on an application, and up to a week after that for the full loan check to be disbursed. After 14 Days it's just $67/month! 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. To verify non-payroll costs, you must submit: For mortgage interest payments: Copy of lender amortization schedule and receipts or cancelled checks verifying eligible payments from the covered period. 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. Webhttps://crumrealestate.comHere is information to help Independent Contractors get through the Coronavirus epidemic. You will choose the length of the Covered Period for your loan when you fill out the PPP loan forgiveness certification or application. President Jeanne Radsick gives an update on new member for the coronavirus pandemic. But you can qualify for those programs, even if you have no employees. 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). Any unforgiven amounts will be considered loans with the following terms: A 1.00% interest rate (non-compounding and non-adjustable). No. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. The SBA prohibits you from obtaining an EIDL loan if your business engages in any of the following activities: Other things that may disqualify you from obtaining an EIDL loan is if any principal owner with a 50% or greater interest in your business is more than 60 days late on child support obligations. 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. 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 How the CARES Act Can Help Agents and Brokers On June 17, 2020, the SBA posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act. PPP loans will have a non-compounding and non-adjustable 1.00% fixed interest rate. Economic Injury Disaster Loan Program: Required fields are marked *. Any forgiven PPP loan proceeds do not need to be reported as gross income by the borrower for federal and state income taxes. Nothing on this website is an offer or a solicitation for a loan. 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. Theres Still Time to Apply with FEMA: Those who have uninsured or underinsured losses can apply with FEMA in one of three ways: online at 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.