For a complete FAQ about the California COVID-19 relief grant program, please refer to this page: https://careliefgrant.com/50440-2/. Dallas Real Estate | North Texas | Ebby Halliday 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. Press J to jump to the feed. How will the decision be made as to who receives a grant? No. |, California REALTORS expect coronavirus to, https://www.sba.gov/paycheckprotection/find, https://www.loanbuilder.com/ppp-loan-support, https://www.kabbage.com/paycheck-protection-program-loans/, https://getdivvy.com/covid-19/sba-ppp-loans/assistance/, 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, https://www.biz2credit.com/disaster-support/cares-act-loans-coronavirus, https://unionbank.avoka-transact.com/workspace/servlet/SmartForm.html?formCode=ppp-loan, https://squareup.com/us/en/l/sba-ppp-loans, https://quickbooks.intuit.com/small-business/coronavirus/paycheck-protection-program/, https://www.icba.org/about/find-a-community-bank, https://www.creditunionsonline.com/california-credit-unions.html, https://www.cdfifund.gov/Documents/CDFI%20Cert%20List%2004-14-2020%20Final.xlsx, https://www.sbalenders.com/most-active-sba-banks-in-2019-mid-year-review/, https://smartasset.com/insights/ppp-loan-lenders. WebGo to EIDL r/EIDL Posted by Clear-Translator-886. for Real Estate Agents 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. 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. As of April 24, 2020, an additional $50 billion was allocated to EIDLs and an additional $10 billion was allocated for EIDL grants. If you are a sole proprietor or independent contractor without employees, entering 0 on the form will not affect your forgiveness.). Government guarantee of a loan means that the government assumes the debt obligation for the loan if the borrower defaults. 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. Real estate agents can use SBA 7(a) loans for buying or maintaining a vehicle, refinancing business debt, and expanding a real estate brokerage. UTC-05:00. 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. Consult with your accountant if you need assistance determining your gross receipts, and/or refer to SBAs FAQ document available here. COVID EIDL FAQs as of September 3, 2021 - Small Payment deferment until: (a) whenever the amount of loan forgiveness is remitted to the lender; or (b) 10 months after the applicable forgiveness covered period if a borrower does not apply for forgiveness during that 10month period. 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. Press question mark to learn the rest of the keyboard shortcuts. A streamlined online application for EIDL loans has been made available by SBA at the following link: 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. Required fields are marked *. See Question 3A. See our step-by-step guide on applying for an EIDL. Use r/TargetedEIDL for advance/grant issues. EIDL Loan The SBA is launching a new round of economic injury disaster loan (EIDL) Advances called Targeted EIDL Advance which provides eligible businesses with Agents may qualify for their own PPP loans. Once approved, money is usually transferred to your bank account, using the banking information that you provided in the application. I think my lender allowed my loan amount to be too high. There remain many ambiguous provisions in the laws that continue to be clarified by rule-making at the federal and state agencies. Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses. The SBA instituted this rule to serve as an additional deterrent to fraud, waste, and abuse. What should I do? When do I have to begin and end using PPP loan proceeds to qualify for forgiveness? endstream endobj 2031 0 obj <. Borrowers with employees may have costs that fall into this category. Read more: PPP eligibility and how small businesses can use the funds. Yes but borrowers cannot take out an EIDL and a PPP loan for the same purposes. recommends seeking a CPA to provide that assistance. You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. Copyright 2018 - 2023 The Ascent. When can I submit my loan forgiveness certification or application? In our next piece, we also cover two big tax options real estate brokers can use to provide further relief. This is because 7(a) loans can be are incredibly flexible, and can used for working capital, equipment, and owner-occupied commercial real estate. 5 EIDL Loan Terms and Requirements You Should Know - The We are a technology company that uses software and experience to bring lenders and borrowers together. If your financial projections are looking grim, it might be worth considering applying for an EIDL loan before the December 21, 2020, deadline arrives. Click here to read our full review for free and apply in just 2 minutes. 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. Right now, the EIDL can cover up to six months of working capital or operating expenses, with a cap of $150,000, provided that your business qualifies. Demonstrate at least a 25 percent reduction in gross receipts in the first, second, or third quarter of 2020 relative to the same 2019 quarter. However, there are some PPP lenders, such as community banks, that are willing to take new customers. 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. No, payroll costs do not include compensation to agents who are independent contractors. These lenders will be handling the PPP application process. Your net profit for 2019 was $230,000. There are strict guidelines about what you can and cannot use EIDL loans for. Calculating how much youre entitled to as an independent contractor has a formula to it. Loans are automatically placed into deferment the first year of the loan, with repayment starting a year from when the initial loan was received. Will this affect my loan forgiveness? For businesses established after the fourth quarter of 2019, the SBA compares your second or third quarter of 2020 revenue to revenue from the first quarter of 2020. There are thousands of banks that already participate in the SBAs lending programs, including numerous community banks. The expanded Covered Period permitted by the PPP Flexibility Act increases the amount eligible for forgiveness to business owners for cash compensation paid to employees. For annual revenues greater than $1,000,000 up to $2,500,000, the available grant amount is $25,000. Independent contractors who have been adversely impacted by the COVID-19 emergency are eligible. 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. You should consult with your tax advisor to see how PPP loan forgiveness may affect you and your business. Employees will likely need to pay income tax on the loan proceeds they receive, although the IRS has not yet issued any formal guidance on this. If you need immediate financial relief, arranging an SBA Express Bridge Loan (EBL) (discussed below) with your lender is a good option. EIDL 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. Tax forms (or equivalent third-party payroll service provider reports for the periods that overlap with the Covered Period. Any other COVID-19 related expenses not already covered through grants, forgivable loans or other relief through federal, state, county or city programs. WebTax Ease is one of the top lenders for Texas Property Tax Loans for both commercial and residential properties. Homeowners, Renters, Business Owners: SBA Disaster Loans Key Businesses that have experienced substantial economic injury are eligible for an EIDL. California has announced a new relief grant program for small businesses affected by the COVID-19 pandemic. To apply for forgiveness of your PPP loan, you must complete the certification and submit it to your lender. 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/. A borrower will now be able to receive forgiveness if the borrower signs and submits to the lender, On June 17, 2020, the SBA posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. As mentioned earlier, there are a lot of things that you cannot spend EIDL funds on, including employee bonuses, relocation costs, or loan repayments. We will continue to update this FAQ as any rules or other guidance are provided. Is SIC code 6531 eligible for EIDL loan? The Express Bridge Loan (EBL) program authorizes SBA express lenders to provide expedited guaranteed bridge loan financing on an emergency basis for disaster-related purposes to small businesses (including sole proprietors, independent contractors and other self-employed individuals) while those small businesses apply for and await long-term financing. 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. 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. For the loan to be fully forgivable, any PPP loan proceeds that are not spent on payroll costs must be spent on certain non-payroll costs: namely, mortgage interest payments, rent, operations expenditures, property damage costs, supplier costs, worker protection expenditures, and utilities. Are these grants still available? This means that theoretically, businesses will not be able to take out dividends for over 30 years if they Questions for the Real Estate and Construction 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. 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. 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 borrower can spend the owner income replacement portion of the PPP loan on anything the borrower chooses. Both of these loan programs offer a number of advantages for real estate agents. The CARES Act II signed on December 27 creates a simplified loan forgiveness application process for loans under $150,000. 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. 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. For example, if youre looking to change your business structure from a sole proprietorship to an S corporation, you will first need the approval of the SBA. According to court documents, Dadyan was a member of a Los Angeles-based fraud ring that schemed to fraudulently obtain more than $20 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. 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. 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. Licensed Real Estate Agents - Real Estate Tax Tips 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. Real-estate brokers, are you looking for clarity around what help youre eligible for during the COVID-19 crisis? Press J to jump to the feed. I am a Paperless Agent member. eidl for real estate agents An attestation that the loan was used in compliance with the law. Check with your bank to determine if it is currently offering EBLs and to see if you qualify. Thank you SIC code 6531 isnt even right for my biz but thats what NAV shows so I guess thats what they will use. 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. New to real estate and Carolina Ones James Island office, Arnold is the owner of a small business specializing in Live Edge Furniture and Home Dcor. list of mortuary science schools in kenya. None of the information on this site constitutes legal advice. The 2019 or 2020 IRS Form 1040 Schedule C that was provided by a sole proprietor at the time of the PPP loan application must be used to determine the amount of gross income or net profit allocated to the borrower for the Covered Period. So whatever you do, make sure you are applying for these stimulus packages and make sure a professional is helping you so you can make sure you are doing this right and getting the most out of it. You cannot apply for PPP loans on the SBA website. All EIDL loans carry a term of 30 years, with an interest rate of 3.75%. They want to know all of your debts. 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. Small Business Loans for Real Estate Agents | SBA 7(a) Loans 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. Will I need to pay income tax on the PPP loan proceeds if I use the proceeds for income replacement? Where can I find a step-by-step guide for completing the application? Any forgiven PPP loan proceeds do not need to be reported as gross income by the borrower for federal and state income taxes. Reddit and its partners use cookies and similar technologies to provide you with a better experience. The following are the eligible uses of grant funds: All employee expenses including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums; Working capital, overhead (including rent, utilities, mortgage principal and interest payments (excluding mortgage prepayments)), debt payments (principal and interest) incurred before March 1, 2020; Costs associated with re-opening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures; Costs associated with complying with COVID-19 federal, state or local guidelines for reopening with required safety protocols, including but not limited to equipment, plexiglass barriers, outdoor dining, PPE supplies, testing, and employee training expenses; or. 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). The SBA 504 loan is intended for the purchase and construction of owner-occupied commercial real estate. Thus, if you are a Schedule C filer whose gross income is greater than $150,000 and you apply for a PPP loan, the SBA may send you a Loan Necessity Questionnaire to verify that current economic uncertainty made the loan request necessary to support the ongoing operation of your business. HUD 223f Loan,HUD 223a7 Loan, Before you agree to a loan, be sure that you are aware of and understand EIDL loan terms and requirements adequately. Create an account to follow your favorite communities and start taking part in conversations. Covid-19 EIDL Loan Collateral and Personal Step 3: Multiply the average monthly gross income or net profit amount from Step 2 by 2.5. Press question mark to learn the rest of the keyboard shortcuts. Things are still changing on a daily basis and more and more clarity is being provided, but as of now For the Payroll Protection Plan (PPP): The sum of payments of any compensation to or income of a sole proprietor/independent contractor that is a wage, commission income, net earnings from self-employment or similar compensation, not more that $100,000 annually as pro-rated during the covered period,(February 15, 2020-June 30,2020). Thus, if your Schedule C gross income or net profit amount is $100,000 or greater, you qualify for the maximum loan available to a sole proprietor without employees, which is $20,833.33. Must not use proceeds for any of the following: Funding for other debts (refinancing, consolidating, or repaying). How do I calculate my maximum PPP loan amount if I am a sole proprietor without employees? Tags: Using line 7 gross income will usually lead to a higher loan calculation, so it will be preferred for most sole proprietors. Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less The grant amount will be based on the businesss annual revenue as documented in its most recent tax return. Checking vs. Savings Account: Which Should You Pick? 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 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). Applying for an EBL will be done through your lender. Applicants with multiple business entities, franchises, locations, etc. This will determine loan amount! Will employees need to pay taxes on the proceeds that they receive? 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. When will I know if my PPP loan is 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. 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). Multifamily Minute Reader Reflections: When Do You Start the Refi Process? Thank You so much. Eligible rent costs include payments for rent obligations on real or personal property under a leasing agreement in force before February 15, 2020. SBA will reach out directly via email and provide more details about how businesses can request an increase close to the April 6 implementation date. SBA will loan borrowers up to $2 million for an initial PPP loan and up to $2 million for a second draw PPP loan. No. SBA EIDL Loans are ELIGIBLE for Rental Properties You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. 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. Remaining portions of the EIDL, for purposes other than those laid out as eligible for loan forgiveness under the PPP, will remain a non-forgivable loan. EMERGENCY INJURY DISASTER LOAN (EIDL) APPLY HERE: Application period OPENPAYROLL PROTECTION PLAN (PPP) FIND A LENDER: Application period begins April 10th, Economic Injury Disaster Load Emergency AdvancePayroll Protection Plan (PPP) OverviewPayroll Protection Plan (PPP) Fact Sheet. All It can be used for working capital, equipment, and owner-occupied commercial real estate. For businesses established after the second quarter of 2019, the SBA compares revenue from any 2020 quarter to revenue from the third or 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. Tue Mar 07 2023 at 10:00 am to 12:00 pm. Economic Injury Disaster Loans (EIDLs) are targeted, low-interest loans to small businesses that have been severely impacted by the coronavirus. For worker protection expenditures: Copy of invoices, orders, or purchase orders paid during the Covered Period and receipts, cancelled checks, or account statements verifying those eligible payments, and documentation that the expenditures were used by the borrower to comply with applicable COVID-19 guidance during the Covered Period. Please be advised the lists above may be amended at any time without notice. You will need to provide the following information as part of the application process: General information about the business, including EIN (or SSN for a sole proprietorship), Gross revenues for the 12 months prior to the date of the disaster (which SBA designates as Jan. 31, 2020), Cost of goods sold for the 12 months prior to the date of the disaster, Personal and contact information for business owners, Information about where to send funds (bank name, account number, and routing number). Because of the current application backlog, application approvals are likely to be significantly delayed. 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.
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