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. All of the largest banks (such as JPMorgan Chase and Bank of America) are offering PPP loans. What are the eligibility requirements for a targeted EIDL advance? There is currently no official guidance from the EDD as to whether PPP loan proceeds need to be reported as income when you are certifying for PUA or UI. 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. This website is owned by a private company that offers business advice, information and other services related to multifamily, commercial real estate, and business financing. Where can I find more information about EBLs? Gross receipts includes all revenue in whatever form received or accrued (in accordance with the borrowers accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. The actual loan size borrowers receive will be determined by a formula based on average total monthly payroll costs over a one-year period. 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. For operations expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments. 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What are the risks if I do? Whatever monies you do spend, remember to save those receipts! The Act extends the deadline to apply for a PPP loan to May 31, 2021. 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. 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. PPP applications already reopened the week of January 11 for community development financial institutions. (Note: The cap is based on 8 weeks worth or $15,385, whichever is less, for an 8-week Covered Period.). In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application. Will my PPP loan forgiveness be reduced if I lay off employees or reduce their salaries? What is the California Small Business COVID-19 Relief Grant Program, and how much money can I receive from the program? Best Homeowners Insurance for New Construction, How to Get Discounts on Homeowners Insurance. Yes, but the borrower may include only the share of covered non-payroll expenses that were deductible on the borrowers 2019 or 2020 tax filings. And, if youre a real estate agent or realtor looking to get an edge over the competition, getting an SBA loan could be great way to do so. We have developed a library of resources in our COVID-19 resource center to help you stabilize today and prepare for tomorrow. There are thousands of banks that already participate in the SBAs lending programs, including numerous community banks. Starting the week of April 6, 2021, the SBA is raising the loan limit for the EIDL program from 6 months of economic injury with a maximum loan amount of $150,000 to 24 months of economic injury with a maximum loan amount of $500,000. WebTake this free practice test to see how prepared you are for a real estate agent certifying exam. I am a Paperless Agent member. EIDL loans carry a low interest rate and a 30-year repayment term and can offer a lifeline to struggling small businesses. 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. No. Subscribe to Real Estate & Land Use Section news %%EOF 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. See our step-by-step guide on applying for an EIDL. 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. Have used or will use the full amount of their initial PPP loan. What is a second draw Paycheck Protection Program loan, and who qualifies? This means sole proprietors without employees will all be able to get their PPP loans fully forgiven simply by filling out and submitting the one-page certification form to their lender. Agents may qualify for their own PPP loans. The SBA instituted this rule to serve as an additional deterrent to fraud, waste, and abuse. Borrowers have until December 31, 2020 (or, for PPP loans made after December 27, 2020, the last day of the Covered Period) to restore their workforce levels and wages to the pre-pandemic levels required for full forgiveness. As described below, Paycheck Protection Program (PPP) loans are provided on very favorable terms, and they may be the best option for brokers if used to cover payroll and overhead costs. (Like an emergency grant that is available within 3 days of applying even if you haven't been approved yet!). For rent or lease payments: Copy of current lease agreement and receipts of cancelled checks verifying eligible payments from the Covered Period. Your business must be an eligible business as determined by the SBA including (but not limited to): Have been in business for a minimum of two years. While the SBA states that the application can be completed in around two hours, others have stated that it took them around 45 minutes to an hour to complete. All If you are a sole proprietor or independent contractor without employees, entering 0 on the form will not affect your forgiveness.). 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. 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. hbbd``b`~$ *3z B $b .H "AG There is nothing preventing a borrower from spending all PPP loan proceeds immediately upon receipt. You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. How Much Does Home Ownership Really Cost? 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. What is an Economic Injury Disaster Loan, and who qualifies? Learn more about this loan, including qualifications and how to apply. The Covered Period cannot extend beyond September 30, 2021. Please be advised the lists above may be amended at any time without notice. Can I receive a targeted EIDL advance if I have not yet applied for an EIDL? 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. What happens if I previously had an EIDL advance deducted from my PPP loan forgiveness? "Payroll costs" include net profit of independent contractors. Borrowers with employees may have costs that fall into this category. All Rights Reserved. Therefore, please keep in mind that it is not certain you will receive a grant even if you apply and meet all eligibility requirements. How will PPP loan forgiveness for owner replacement income work if I am a sole proprietor? No. These lenders will be handling the PPP application process. 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). Loans are for a term of 30 years. You could, if desired, get a PPP loan to cover payroll costs (defined below) and other costs that are forgivable under the PPP, and then get an EIDL loan to cover some of your other expenses. How long will it take for me to get an EIDL after I apply? Its a time for family, friends and creating lasting memories. abnormally high interest rates or fees), you may be able to use an SBA 7(a) loan to refinance it. To be eligible for a supplemental targeted advance, an entity must meet all of the criteria above, plus: (1) the entity must employ not more than 10 people; and (2) the entity must have suffered an economic loss greater than 50 percent. The lender is responsible for notifying the borrower of the forgiveness amount after the SBA makes its decision. SBA will loan borrowers up to $2 million for an initial PPP loan and up to $2 million for a second draw PPP loan.
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