All Rights Reserved. Use r/TargetedEIDL for advance/grant issues. When the EIDL loan was first offered, business owners were given an option to apply for a loan advance that the SBA would consider a grant, provided that all the necessary criteria were met. Supplier costs of perishable goods can be made before or during the life of the loan. 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! Construction and real estate The list of partners, organized by location and by language services, can be found. All of the largest banks (such as JPMorgan Chase and Bank of America) are offering PPP loans. Economic Injury Disaster Loans (EIDLs) are targeted, low-interest loans to small businesses that have been severely impacted by the coronavirus. Use of funds was expanded to Before you agree to a loan, be sure that you are aware of and understand EIDL loan terms and requirements adequately. The SBA 504 loan is intended for the purchase and construction of owner-occupied commercial real estate. 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. The commission is negotiable and is typically split between the sellers agent and buyers agent at 3% each. Real estate agents can use a Small Business Administration (SBA) 7 (a) loan to purchase real estate, buy or construct buildings, modernize their facilities, 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. Owner Income Replacement is capped at 2.5 months worth or $20,833 per individual, whichever is less, for a 24-week Covered Period. What happens if any portion of my PPP loan is not forgiven? Its time for you to get more listings, more leads, and sell more homes in the next 12 months than you did in the last 12 months. C.A.R. 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. Which of the SBA loans should I apply for? Do I need to submit any additional supporting documentation with my loan forgiveness application? You cannot request the specific amount of the loan - instead, the SBA determines how much you can borrow using a formula intended to approximate 24 months of your operating expenses. Many or all of the products here are from our partners that compensate us. 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. Eligible operations expenditures include payments for any software, cloud computing, and other human resources and accounting needs. has released to the press on the novel coronavirus: March 12, 2020: California REALTORS expect coronavirus to impact housing market. 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. No. 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. C.A.R. Lenders are required to issue decisions on borrowers' forgiveness applications to the SBA within 60 days after receiving them. Below are some resources and links that you can use to find a PPP lender. Apply for a loan in minutes and get multiple quotes today. Small Business Loans for Real Estate Agents | SBA 7(a) Loans The SBA 7(a) loan is the most commonly used loan program and is incredibly flexible. Economic Injury Disaster Loan Program: Will this affect my loan forgiveness? PPP loans are offered on highly favorable terms for borrowers: They are forgivable, they are guaranteed by the government, and payments are deferred. How will PPP loan forgiveness for owner replacement income work if I am a sole proprietor? To verify payroll costs, you must submit the following documents along with your PPP Loan Forgiveness Application: For sole proprietors without employees, proprietor expenses or owner income replacement can encompass the entire principal of the loan, so no additional supporting documentation will need to be submitted to obtain forgiveness. Statutory Nonemployees. 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. Businesses that received a loan subject to the previous limits do not need to submit a request for an increase. Note: For second draw PPP loans, sole proprietors have the option of calculating average monthly payroll costs based on the 1-year period before the date on which the loan is made rather than the 2019 calendar year. 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. The grant amount will be based on the businesss annual revenue as documented in its most recent tax return. For borrowers with employees, payroll costs include cash compensation paid to employees, employer contributions to employee health insurance, employer contributions to employee retirement plans, and amounts paid by the borrower for employer state and local taxes assessed on employee compensation. How Much Does Home Ownership Really Cost? There are thousands of banks that already participate in the SBAs lending programs, including numerous community banks. 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. In addition, all state, local, and municipal government entities are prohibited from applying for an EIDL loan, as are all members of Congress. This powerful tool is de, If you're a real estate agent, chances are you've heard about the "Big Three" of real estate marketing: buying online leads, door knocking, and cold calling. 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. real estate agent's The CARES Act II signed on December 27 creates a simplified loan forgiveness application process for loans under $150,000. Homeowners, Renters, Business Owners: SBA Disaster Loans Key If you only have a personal checking account, these lenders will still not accept your PPP application. real estate agents If you need to visit the SBA directly please click here: sba.gov. real estate 2030 0 obj <> endobj You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. 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. Any thoughts on what to do here? 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. One was a schedule of liabilities. According to the SBA, applicants do not need to take any action at this time. According to the Department of the Treasury, the lender must make the first disbursement of a PPP loan no later than ten calendar days from the date of loan approval. Borrowers should calculate their maximum loan based on both options to determine which option will provide them with the largest maximum loan. And once youre done, you just submit the application and wait for a response, which includes a loan quote. A small business must satisfy the following criteria to be eligible to receive a grant award: Must be a sole proprietor, independent contractor, or registered for-profit business entity (e.g., C-corporation, S-corporation, limited liability company, partnership) that has yearly gross revenue of $2.5 million or less (but at least $1,000 in yearly gross revenue) based on the most recently filed tax return. The application date is May 2, 2020. For second draw PPP loans of not more than $150,000, borrowers must submit documentation sufficient to establish that they experienced a reduction in revenue. Source. Do I have any other options? The full amount of the loan can be up to $500,000, with interest rates of 3.75% for for-profit businesses. What are the risks if I do? Are expenses paid with forgiven PPP loan proceeds deductible from my federal and state income taxes? Borrowers can exclude from loan forgiveness calculations employees who turned down good faith offers to be rehired at the same hours and wages as before the pandemic. Personal finance. To apply for forgiveness of your PPP loan, you must complete the application and submit it to your lender. In our next piece, we also cover two big tax options real estate brokers can use to provide further relief. If my PPP loan is forgiven, will I still be required to pay interest? 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. Webhttps://crumrealestate.comHere is information to help Independent Contractors get through the Coronavirus epidemic. 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. has not paid and will not pay the companies any compensation whatsoever for the level of service they have committed to providing. Additionally, the American Rescue Plan created a new supplemental targeted advance program. With all of the information floating around about stimulus packages and loans, you're probably wondering what this bail out means to you, as a real estate agent, and how you can get access to YOUR stimulus money We want to make sure you know exactly how to get the support you need and how to get it the right way, so we asked the experts to explain it to us, and boy did they deliver. More information about PPP loan forgiveness can be found in the Loan Forgiveness section of the FAQ. hb```f`` P @1V@NTYaR |JRn:Z 3Ap {/#OyCmc.\3YEYYK)pK/a\/X"R%-&iRmR#P%,.3/ :) u8NeHsd"Hv"3]APD3Jt @d(b .H"J6GGa"+@Z%"EC!Qqp(@pM*00^x*Z;hh20j %PDF-1.6 % Your lender may have additional instructions for submitting the PPP loan forgiveness certification. How long will it take for me to get an EBL after I apply? https://www.sba.gov/sites/default/files/2018-06/SOP%2050%2030%209-FINAL.PDF. What are the eligibility requirements for the program? 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. Payroll costs (including paid sick leave), employee salaries, rent expenses, mortgage expenses, utility expenses, PPE expenses, operations expenses, property damage costs, supplier costs, insurance premiums and other debt obligations. C.A.R. A streamlined online application for EIDL loans has been made available by SBA at the following link: https://covid19relief.sba.gov/. Additionally, many financial technology (FinTech) companies have started processing PPP loan applications. SBA 7(a) loans for working capital and equipment have terms of up to 10 years, while SBA 7(a) loans for commercial real estate loans have terms of up to 25 years. Getting a small business loan should be easy. To apply for forgiveness of your PPP loan, you must complete the certification and submit it to your lender. And because the SBA requires you to save the receipts of any purchases made with EIDL loan monies, you must track these purchases properly. The proprietor expenses or owner income replacement portion of the PPP loan can be spent by the borrower on anything, at any time. There are some exceptions, such as for a business with more than 500 employees that is considered small under SBA Size Standards. Real-estate brokers, are you looking for clarity about what help youre eligible for during the COVID-19 crisis? How will I be able to obtain forgiveness for my PPP loan? 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. 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 Will my PPP loan forgiveness be reduced if I lay off employees or reduce their salaries? An EIDL can help small business owners weather the COVID-19 storm. Have used or will use the full amount of their initial PPP loan. While taking out any loan requires serious consideration, an EIDL loan offers good repayment terms, a low interest rate, and an easy application process. What should I do? CMBS Loans, WebGo to EIDL r/EIDL Posted by Clear-Translator-886. Real estate brokers: Can you qualify for a PPP loan? And Its also a time to reflect back on. An attestation that the loan was used in compliance with the law. WebTax Ease is one of the top lenders for Texas Property Tax Loans for both commercial and residential properties. WebThe standard, fair commission for a real estate agent is 6% of the home's sale price. On March 30, President Biden signed the PPP Extension Act. Were also here to help you navigate the uncertainty of the COVID-19 pandemic and its impact on your finances and business. Im a sole proprietor without employees but indicated on my PPP application that I have 1 employee (myself). 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. Applying for the EIDL does not restrict your ability to also apply for the PPP if you are eligible for both. 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. 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. Businesses with fewer than 500 employees including sole proprietors, independent contractors, and other self-employed individuals all qualify for initial PPP loans. The SBA will reach out to those who qualify to explain how to receive a targeted EIDL advance. If your loan was $50,000 or less, then your forgiveness will not be reduced even if you lay off employees or reduce their salaries during the Covered Period. You will choose the length of the Covered Period for your loan when you fill out the PPP loan forgiveness certification or application. How to Fill Out the Targeted EIDL Advance Grant - EntreCourier This may help you. Who Are Specialized Lenders in the SBA 7(a) Loan Program? What forms do sole proprietors need to provide to the lender to apply for a PPP loan? This allows them to overcome one of the largest hurdles their clients face the financing portion of bringing their dream business to life. abnormally high interest rates or fees), you may be able to use an SBA 7(a) loan to refinance it. All rights reserved. PPP loans will have a non-compounding and non-adjustable 1.00% fixed interest rate. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. WebOne Experience. We have developed a library of resources in our COVID-19 resource center to help you stabilize today and prepare for tomorrow. ECONOMIC RELIEF AND BENEFITS FOR REAL ESTATE AGENTS Because an EBL loan is a bridge loan, first disbursement of the EBL loan must occur within 45 days of the lenders receipt of an SBA loan number. Your business structure must remain the same for the life of the loan. 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. Press inquiries may be directed to Media Relations. (office fees, advertising, cellphone, high speed internet, licensing fees, and real estate board fees?). How can I apply for a targeted EIDL advance? Other SBA loan options include SBA express loans and SBA microloans. 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/. For businesses established after the third quarter of 2019, the SBA compares revenue from any 2020 quarter to the fourth quarter of 2019. But what if we told you that the, The Commission Calculator is Available NowWe love the holidays at the Paperless Agent. 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). The tests cover such subjects as forms of ownership, physical descriptions, valuation and regulation. 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. recommends seeking a CPA to provide that assistance. Janover The SBA is only allowing the gross income formula to be used for loans approved on or after March 3, 2021. These companies are not in any way reviewed, supported or endorsed by C.A.R. https://careliefgrant.com/wp-content/uploads/2020/12/FOR-WEBSITE-ONLY-CRG-All-Businesses-Program-and-Application-Guide-Public.pdf. Payroll costs do not include compensation to agents who are independent contractors. However, be aware that many of these lenders will only be accepting applications from customers that have a pre-existing relationship with the lender, and/or the lender will be prioritizing applications from those customers. If SBA determines in the course of its review that the borrower was ineligible for the PPP loan based on the provisions of the CARES Act, CARES Act II, SBA rules or guidance available at the time of the borrowers loan application, the loan will not be eligible for loan forgiveness. For a complete FAQ about the California COVID-19 relief grant program, please refer to this page: https://careliefgrant.com/50440-2/. From your 2019 or 2020 IRS Form 1040 Schedule C, you may elect to use either your line 7 gross income amount or your line 31 net profit amount. 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 eligibility requirements for a second draw PPP loan are different than the requirements for an initial PPP loan. For more information about the Loan Necessity Questionnaire, please refer to question #53 of this document. Subscribe to Real Estate & Land Use Section news 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. Kind of a weird one. No; however, emergency grant portion does not need to be repaid, $500,000; eligible borrowers can ask for "targeted" emergency grant of up to $15,000, Working capital purposes, including payment of fixed debts, payroll, and accounts payable, "Disaster-related purposes" to support the survival and/or reopening of the small business.