Eligible worker protection expenditures include expenditures for personal protective equipment and adaptive investments to help a loan recipient comply with federal health and safety guidelines or any equivalent State and local guidance related to COVID-19 during the period between March 1, 2020, and the end of the national emergency declaration. :), Hello! Legislation and regulation What Is the EIDL Loan Program? Will this affect my loan forgiveness? Licensed real estate agents are statutory nonemployees and are treated as self-employed for all Federal tax purposes, including If you don't have one. What forms do sole proprietors need to provide to the lender to apply for a PPP loan? The following options are available to brokers: Are California Relief Grants available for brokers from the state of California? The Economic Injury Disaster Loan (EIDL) program is a loan program guaranteed by the SBA. Since the form is already provided by the borrower at the time the PPP application is submitted, no additional documentation will need to be submitted by the borrower to obtain forgiveness for the portion of the loan used as the borrowers income replacement. There are some exceptions, such as for a business with more than 500 employees that is considered small under SBA Size Standards. C.A.R.s Guidance for Employers regarding the COVID-19 situation provides more information on the FFRCA sick leave tax credits.). Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. 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. Do I have any other options? The SBA instituted this rule to serve as an additional deterrent to fraud, waste, and abuse. 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. 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/. ($100,000 12 * 2.5). Real estate agents can use a Small Business Administration (SBA) 7 (a) loan to purchase real estate, buy or construct buildings, modernize their facilities, 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. What is the California Small Business COVID-19 Relief Grant Program, and how much money can I receive from the program? 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 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. WebLearn critical details of the benefits offered to real estate agents including: Unemployment Benefits, Economic Disaster Loans/Grants (EIDL) and the Payroll Protection Program We have developed a library of resources in our COVID-19 resource center to help you stabilize today and prepare for tomorrow. The grant amount will be based on the businesss annual revenue as documented in its most recent tax return. California has announced a new relief grant program for small businesses affected by the COVID-19 pandemic. In order to qualify for an SBA 504 loan, businesses must meet a strict set of eligibility requirements: In addition, the prospective borrower applicants must: Real estate agents can take advantage of the Small Business Administration's (SBA) loan programs to help fund their business. WebWe have been helping real estate agents and title companies with their foreign national clients for almost 20 years. endstream endobj startxref However, EDD suggests it is safer to do so. 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). Effective March 25, 2020, SBA expanded the program to apply nationwide. Borrowers with employees may have costs that fall into this category. Real estate agents can use SBA 7(a) loans for buying or maintaining a vehicle, refinancing business debt, and expanding a real estate brokerage. Heres the simplified three-step process: Heres an example of the PPP loan calculation in action. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. Must be an active business operating since at least June 1, 2019. SBA will first reach out to EIDL applicants that already received a partial EIDL advance (i.e. If you operate as a sole proprietor, you can use the PPP loan proceeds as a substitute for the compensation you would normally receive from commissions. 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 Before you apply for a PPP loan, it is important to review the options with your CPA or financial advisor. Good morning! Borrowers with loans under $150,000 who fill out the short-form certification will not need to submit additional documentation to obtain forgiveness. 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. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. Were also here to help you navigate the uncertainty of the COVID-19 pandemic and its impact on your finances and business. But now, instead of eight weeks worth of average 2019 or 2020 weekly cash compensation (a max of $15,385 per individual), you can get loan forgiveness for up to 24 weeks worth of average weekly 2019 or 2020 cash compensation, making the new maximum forgiveness cap $46,154 for cash compensation per individual employee. What should I look out for? Any unforgiven amounts will be considered loans with the following terms: A 1.00% interest rate (non-compounding and non-adjustable). | Terms & Conditions, $20,833.33 initial loan and $20,833.33 second draw loan for independent contractors without employees. Payment receipts, cancelled checks, or account statements documenting the amount of any employer contributions to employee health insurance and retirement plans that you included in the loan forgiveness amount. Question: I filed an application with the SBA for the EIDL Advance over a week ago, and received a Confirmation Number stating I would receive an update at the e-mail address I registered with. The two most common loan programs are the SBA 7(a) loan and the SBA 504 loan. Funds are usually available within 5 to 10 business days of approval. C.A.R. Compensation may impact the order of which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. Click here for our Advertiser Disclosure. Its a time for family, friends and creating lasting memories. Most brokers will qualify for EIDLs. Pursuant to the COVID relief package that passed on December 27, 2020 (known as CARES II Act), borrowers that have previously received a PPP loan will now be allowed to take out a second PPP loan. 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, if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness. This may help you. If you obtain an EIDL loan for more than $25,000, you will need to pledge business collateral to guarantee the loan. The following are the ineligible uses of grant funds: Human resource expenses for the State share of Medicaid, Personal expenses or other expenses unrelated to COVID-19 impacts, Expenses for repairs from damages already covered by insurance, Reimbursement to donors for donated items or services. They have not started distributing any money yet, and we have not been informed as to when that might happen. Proprietor expenses are defined as business expenses plus owner compensation and are calculated based on a proportionate share of the borrowers 2019 or 2020 gross income, as reflected in the individuals 2019 or 2020 Form 1040 Schedule C. Owner income replacement is calculated based on a proportionate share of the borrowers 2019 or 2020 net profit, as reflected in the individuals 2019 or 2020 Form 1040 Schedule C. The SBA has clarified that borrowers can now attribute up to 2.5 times their 2019 or 2020 IRS Form 1040 Schedule C average monthly gross income as proprietor expenses and up to 2.5 times average monthly net profit as owner income replacement.. However, it is possible the state law will be changed to conform with the new federal law. A Bellingham-based real estate brokerage faces accusations that it knew two of its male agents drugged and sexually assaulted female co-workers during work events.. Thank you SIC code 6531 isnt even right for my biz but thats what NAV shows so I guess thats what they will use. No. are not eligible for multiple grants and are only allowed to apply once using their eligible small business with the highest revenue. The list of partners, organized by location and by language services, can be found. 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). Hope this helps! 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). Owner Income Replacement is capped at 2.5 months worth or $20,833 per individual, whichever is less, for a 24-week Covered Period. Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses. You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. 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. Pursuant to guidance from the Department of the Treasury, CPAs are not supposed to charge fees for assistance in preparation of a PPP loan application. Checking vs. Savings Account: Which Should You Pick? What is an initial Paycheck Protection Program loan, and who qualifies? Borrowers with loans of $150,000 or greater will need to submit additional documentation to obtain forgiveness. In order to receive a second draw PPP loan, a borrower must: Employ not more than 300 employees. 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. We are a technology company that uses software and experience to bring lenders and borrowers together. The proprietor expenses or owner income replacement portion of the PPP loan can be spent by the borrower on anything, at any time. The tests cover such subjects as forms of ownership, physical descriptions, valuation and regulation. Who Are Specialized Lenders in the SBA 7(a) Loan Program? Im a sole proprietor without employees but indicated on my PPP application that I have 1 employee (myself). Expanding a real estate brokerage: If you need to hire new employees or expand your marketing efforts, SBA 7(a) loans are a great choice. 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. Updated Aug. 5, 2022 - First published on May 18, 2022. If you need to visit the SBA directly please click here: sba.gov. Which of the SBA loans should I apply for? Calculating how much youre entitled to as an independent contractor has a formula to it. FIND A LENDER: Application period begins April 10th, Economic Injury Disaster Load Emergency Advance. How will PPP loan forgiveness for owner replacement income work if I am a sole proprietor? Entities eligible for a supplemental targeted advance will be able to receive an additional $5,000 grant.