We have developed a library of resources in our COVID-19 resource center to help you stabilize today and prepare for tomorrow. 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. 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. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. 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/. Step 2: Calculate the average monthly gross income or net profit amount (divide the amount from Step 1 by 12). The advance face value is Texas Property Tax Loans | Help with Delinquent Property Taxes PPP loans are offered on highly favorable terms for borrowers: They are forgivable, they are guaranteed by the government, and payments are deferred. This loan program can be used to build your real estate office, purchase commercial real estate, modernize facilities, improve energy efficiency, and more. Must be an active business operating since at least June 1, 2019. If someone took the drive-through option literally at your restaurant, you cannot use an EIDL loan to repair the damage. 2019 or 2020 employer health insurance contributions (health insurance component of Form 1040 Schedule C line 14), retirement contributions (Form 1040 Schedule C line 19), and state and local taxes assessed on employee compensation (primarily under state laws commonly referred to as the State Unemployment Tax Act or SUTA from state quarterly wage reporting forms). 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 first disbursement is not made within 90 days from receipt of an SBA loan number, the EBL loan will be canceled. 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. Real estate agents can use a Small Business Administration (SBA) 7(a) loan to purchase real estate, buy or construct buildings, modernize their facilities, improve energy efficiency, and more. Step 2: Calculate the average monthly amount (divide the amount from Step 1 by 12). EIDL loans are 30-year loans with an interest rate of 3.75%. If your financial projections are looking grim, it might be worth considering applying for an EIDL loan before the December 21, 2020, deadline arrives. 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). Your business structure must remain the same for the life of the loan. 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. The estimated amount of the loan used for payroll costs. As of April 24, 2020, an additional $50 billion was allocated to EIDLs and an additional $10 billion was allocated for EIDL grants. Real estate agents can use SBA 7(a) loans for: Buying or maintaining a vehicle: Since real estate agents usually need to travel on a daily basis to meet with clients and show properties, an SBA 7(a) loan can be a great way to fund the purchase or repair of a business vehicle. If this amount is over $100,000, reduce it to $100,000, if this amount is less than zero, set this amount at zero. This will determine loan amount! Use of funds was expanded to Business finance None of the information on this site constitutes legal advice. Because the cap limit is $100,000, if your net profit is over that, you have to reduce it to $100,000. Great to put this video instruction and helping out. If you don't have one. The lender may require the EBL borrower to pay the loan, in part or in full, if the borrower is approved for long-term disaster financing (such as an EIDL) that allows loan proceeds to be used for EBL loan reimbursement. If I previously applied for a PPP loan and calculated my loan amount based on net profit, can I now reapply based on a gross income calculation? What is a second draw Paycheck Protection Program loan, and who qualifies? Many real estate agents may find that the SBA 7(a) program, the Small Business Administrations most commonly used loan program, is the best fit for their needs. If you choose to apply for assistance, work with your lender to apply as soon as possible. For annual revenues greater than $1,000,000 up to $2,500,000, the available grant amount is $25,000. If you are applying for a second draw PPP loan, the best option may be to work with the lender that provided you with the initial PPP loan. About COVID-19 EIDL UTC-05:00. Heres the simplified three-step process: Heres an example of the PPP loan calculation in action. company. Check with your lender for specific details on how they will accept applications. To apply for a PPP (Payroll Protection Plan), you must go through an approved SBA loan provider. Eligibility requirements are fairly broad, so chances are good that your business will qualify if designated as one of the following: The 500-employee maximum applies to all the business types listed above. Schedule of liabilities for a real estate agent : r/EIDL - reddit 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. Any other COVID-19 related expenses not already covered through grants, forgivable loans or other relief through federal, state, county or city programs. Best Mortgage Lenders for First-Time Homebuyers. Many major lenders are currently only assisting borrowers who already have a business checking account with them. Must not use proceeds for any of the following: Funding for other debts (refinancing, consolidating, or repaying). 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. We recommend putting the PPP loan funds into a separate bank account to make it easier to track them. You do not need to take any action related to this decision prior to filling out the loan forgiveness application. Applying for the EIDL does not restrict your ability to also apply for the PPP if you are eligible for both. The SBA is only allowing the gross income formula to be used for loans approved on or after March 3, 2021. EIDL loans carry a low interest rate and a 30-year repayment term and can offer a lifeline to struggling small businesses. Must be able to provide acceptable form of government-issued photo ID. 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 are not eligible for multiple grants and are only allowed to apply once using their eligible small business with the highest revenue. Its a time for family, friends and creating lasting memories. How do I calculate my maximum PPP loan amount if I am a sole proprietor with employees? Real Estate Whatever monies you do spend, remember to save those receipts! How much money can I borrow with an EBL, and what are the terms of the loan? 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. After 14 Days it's just $67/month! 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. Copyright 2018 - 2023 The Ascent. 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. Create an account to follow your favorite communities and start taking part in conversations. 2070 0 obj <>stream WebI was offered $150k on the Economic Injury Disaster Loan (EIDL) - should I take it? For more information about the Loan Necessity Questionnaire, please refer to question #53 of this document. Webhttps://crumrealestate.comHere is information to help Independent Contractors get through the Coronavirus epidemic. You must also provide a 2019 or 2020 IRS Form 1099-MISC (depending on which year you used to calculate your maximum loan amount) detailing nonemployee compensation received (box 7), or an invoice, bank statement, or book of record that establishes you are self-employed. CARES Act II expressly prohibits lenders from requiring any documentation to be submitted by the borrower to obtain forgiveness for loans under $150,000 beyond the items above. Real estate agents can use a Small Business Administration (SBA) 7 (a) loan to purchase real estate, buy or construct buildings, modernize their facilities, is not making any representations or warranties regarding the quality of their services. Real Estate Agent Practice HUD 223f Loan,HUD 223a7 Loan, Borrowers should calculate their maximum loan based on both options to determine which option will provide them with the largest maximum loan. How will I be able to obtain forgiveness for my PPP loan? Click here for our Advertiser Disclosure. However, keep in mind that all loan proceeds for borrowers without employees can be attributed as proprietor expenses or owner income replacement, and there is no need for these borrowers to attribute any of the loan proceeds to the non-payroll costs category. Formula for sole proprietors with employees. Real Estate Agents and Managers 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. Underserved small business groups served by the state-supported network of small business centers (i.e., businesses majority owned and run on a daily basis by women, minorities/persons of color, veterans and businesses located in low-to-moderate income and rural communities). However, keep in mind that CPAs are allowed to charge fees for advisory services, such as helping you decide which COVID-19 relief program is the best fit for your needs and circumstances. As real estate agents, we are exactly who these legislations were designed to help. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application. However, keep in mind that all loan proceeds for borrowers without employees can be attributed as proprietor expenses or owner income replacement, and there is no need for these borrowers to attribute any of the loan proceeds to the non-payroll costs category. 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. ", 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. No contract, cancel at any time. Where can I find more information about EIDLs? All rights reserved. Real estate agents can use SBA 7(a) loans for buying or maintaining a vehicle, refinancing business debt, and expanding a real estate brokerage. Once your application is completed, a loan officer will review the application, with an approval or decline usually sent within days of the application. At least 60% percent of the PPP loan must be spent on payroll costs in order for the loan to be fully forgiven. https://careliefgrant.com/wp-content/uploads/2020/12/FOR-WEBSITE-ONLY-CRG-All-Businesses-Program-and-Application-Guide-Public.pdf. If you only have a personal checking account, these lenders will still not accept your PPP application. How will this affect forgiveness? 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). But the funds that were set aside to cover the advance were quickly depleted, with the SBA discontinuing the advances in July of 2020. real estate agents The SBA has announced that PPP applications will re-open on Friday, January 15, 2021 for certain small lenders (including community banks and credit unions), and applications will reopen on Tuesday, January 19, 2021 for all lenders. Borrowers must make a good-faith certification that the PPP loan is necessary and should document those needs with the filing of the application. Save my name, email, and website in this browser for the next time I comment. Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation. The SBA is launching a new round of economic injury disaster loan (EIDL) Advances called Targeted EIDL Advance which provides eligible businesses with %%EOF Please refer to the Targeted EIDL Advances section below for more information. Real Estate Agents and Managers Real-estate brokers, are you looking for clarity around what help youre eligible for during the COVID-19 crisis? I received an email for a loan processor asking for a couple of things from me. We are a technology company that uses software and experience to bring lenders and borrowers together. In order to receive a second draw PPP loan, a borrower must: Employ not more than 300 employees. If you need immediate financial relief, arranging an SBA Express Bridge Loan (EBL) (discussed below) with your lender is a good option. Independent contractors and sole proprietors are also eligible. To apply for forgiveness of your PPP loan, you must complete the application and submit it to your lender. 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. In addition, all state, local, and municipal government entities are prohibited from applying for an EIDL loan, as are all members of Congress. Real-estate brokers, are you looking for clarity about what help youre eligible for during the COVID-19 crisis? They may not be used to refinance long term debt. Press question mark to learn the rest of the keyboard shortcuts. What should I look out for? 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. Your lender may have additional instructions for submitting the PPP loan forgiveness certification. https://www.sba.gov/sites/default/files/2018-06/SOP%2050%2030%209-FINAL.PDF. (Like an emergency grant that is available within 3 days of applying even if you haven't been approved yet!). Were also here to help you navigate the uncertainty of the COVID-19 pandemic and its impact on your finances and business. But before signing on the dotted line, you should be aware of some of the disadvantages of this loan. If youre an independent contractor, you may be Payroll costs also do not include: Compensation of an individual employee in excess of an annual salary of $100,000; employer-side payroll taxes, railroad retirement taxes, and income taxes; any compensation of an employee whose principal place of residence is outside of the US; and qualified sick or family leave wages for which a credit is allowed under the Families First Coronavirus Response Act. eidl for real estate agents To verify payroll costs, you must submit the following documents along with your PPP Loan Forgiveness Application: Bank account statements or third-party payroll service provider reports documenting the amount of Cash Compensation paid to employees. I have followed up, but to no avail Hi Vince! A government guarantee reduces the risk to the borrower. The real estate industry was adversely affected by statewide and local orders that were put in place in response to the COVID-19 pandemic. Therefore, it will be more difficult for you to represent that the pandemic itself has had an adverse impact on your business. 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. 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. A source for information on applying for LOANS from the SBA's Covid-19 EIDL, reconsideration issues for declined loan applicants, and EIDL increase requests. These are sample forms which illustrate the information you will need to apply for a PPP loan. According to the Wall Street Journal, it usually takes SBA around one month to process a 7(a) loan. 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. The Economic Injury Disaster Loan or EIDL is designed for businesses with fewer than 500 employees. SBA Loans for Brokers | Coronavirus If you're using thewrong credit or debit card, it could be costing you serious money. Although disaster loan assistance is available for up to $2 million, the EIDL for COVID-19 was capped at $150,000. The PPP is particularly attractive because it provides loan forgiveness if you spend the funds on payroll costs and other allowable uses within the first eight weeks of receiving them. No. To verify full-time equivalent employees, you must submit payroll tax filing reported (or that will be reported) to the IRS (typically, Form 941) and state quarterly business and individual employee wage reporting and unemployment insurance tax filings reported (or that will be reported) to the relevant state. Calculate your average monthly payroll cost and multiply that number by 2.5. Im a sole proprietor without employees but indicated on my PPP application that I have 1 employee (myself). One was a schedule of liabilities. 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. So, while the housing market may be hot, theres a ton of competition to contend with. What are the eligibility requirements for the program? Borrowers with employees may have costs that fall into this category. Updated Aug. 5, 2022 - First published on May 18, 2022. No. What is the California Small Business COVID-19 Relief Grant Program, and how much money can I receive from the program? Click below for a free, no obligation quote and to learn more about your loan options. Use r/TargetedEIDL for advance/grant issues. If the full principal of the PPP loan is forgiven, the borrower is not responsible for the interest accrued. However, it is possible the state law will be changed to conform with the new federal law. 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. The EIDL loan application is streamlined for easy completion. Yes, in some cases. 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. Any unforgiven amounts will be considered loans with the following terms: A 1.00% interest rate (non-compounding and non-adjustable). Additionally, no collateral is required to obtain a loan, and there is no personal guarantee requirement. Webrob stafford daughter chicago fire. In 2017, over 6 million homes were sold across the United States, and nearly 90% of sellers used a real estate agent to help them through the process. The actual loan size borrowers receive will be determined by a formula based on average total monthly payroll costs over a one-year period. The SBA refers to this as owner income replacement. The borrower can spend the owner income replacement portion of the PPP loan on anything the borrower chooses. Can I receive a targeted EIDL advance if I have not yet applied for an EIDL? or its members any referral fee or any other thing of value for being on this list. To identify which program(s) youre eligible for, work with your lawyer and an accountant like Wipfli. 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 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. You cannot apply for PPP loans on the SBA website. However, there are some PPP lenders, such as community banks, that are willing to take new customers. Weve all come to expect an overly complicated process when it comes to anything associated with government programs.