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. Understanding Homeowners Insurance Premiums, Guide to Homeowners Insurance Deductibles, Best Pet Insurance for Pre-existing Conditions, What to Look for in a Pet Insurance Company, Marcus by Goldman Sachs Personal Loans Review, The Best Way to Get a Loan With Zero Credit. 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. 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 a complete FAQ about the California COVID-19 relief grant program, please refer to this page: 2021Copyright CALIFORNIA ASSOCIATION OF REALTORS. A borrower will now be able to receive forgiveness if the borrower signs and submits to the lender a one-page certification form. 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. 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. The Economic Injury Disaster Loan or EIDL is designed for businesses with fewer than 500 employees. 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. endstream
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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. 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. What happens if I previously had an EIDL advance deducted from my PPP loan forgiveness? Step 2: Calculate the average monthly gross income or net profit amount (divide the amount from Step 1 by 12). 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. If you choose to apply for assistance, work with your lender to apply as soon as possible. Read more: PPP loans: Proper documentation and accounting. We are a technology company that uses software and experience to bring lenders and borrowers together. How will the decision be made as to who receives a grant? If you're using thewrong credit or debit card, it could be costing you serious money. The SBA is stating that PPP loan forgiveness for payroll costs for sole proprietors without employees is limited to: (i) proprietor expenses when calculating your PPP loan using the gross income formula; and (ii) owner income replacement when calculating your PPP loan using the net profit formula. WebGo to EIDL r/EIDL Posted by Clear-Translator-886. The SBA requires that at least 75% of the PPP loan be spent on payroll, while the remaining 25% can be spent on expenses such as utilities, rent, mortgage interest and other debt obligations. The PPP loan program expired as of June 30, 2020, but was extended on July 4, 2020 to August 8, 2020 and there was approximately $130 billion available as of that date. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. Click here to read our full review for free and apply in just 2 minutes. If my PPP loan is forgiven, will I still be required to pay interest? Use r/TargetedEIDL for advance/grant issues. Applicants who submitted their application and submitted all documentation in an earlier application round should not reapply during subsequent rounds, since one complete application qualifies an applicant to be considered for all rounds. This documentation can be submitted: (i) at the time of the loan application; (ii) on or before the date the borrower submits an application for loan forgiveness; or, (iii) if the borrower does not apply for loan forgiveness, at SBAs request. Once approved, money is usually transferred to your bank account, using the banking information that you provided in the application. The United States Small Business Administration (SBA) delegates the authority to make PPP loans to numerous lenders throughout the country. real estate If you qualify, filling out the EZ version of the loan forgiveness application is the preferred option because it is shorter and less complicated than the full application. The CARES Act II signed on December 27 creates a simplified loan forgiveness application process for loans under $150,000. Repayment plans are available up to 30 years as determined on a case-by-case basis. Have used or will use the full amount of their initial PPP loan. 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. Multifamily Loans,Multifamily Today, Your business structure must remain the same for the life of the loan. Weve all come to expect an overly complicated process when it comes to anything associated with government programs. SBA Loans for Brokers | Coronavirus The borrower can spend the owner income replacement portion of the PPP loan on anything the borrower chooses. WebSBA Economic Injury Disaster Loans (EIDL) are eligible for Rental Property Owners. Real estate agents can use a Small Business Administration (SBA) 7 (a) loan to purchase real estate, buy or construct buildings, modernize their facilities, 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. What assistance is available for brokers from the SBA? Calculating how much youre entitled to as an independent contractor has a formula to it. Formula for sole proprietors with employees. In addition, all state, local, and municipal government entities are prohibited from applying for an EIDL loan, as are all members of Congress. You should carefully review the options available to select the SBA loans that will be the best fit for your needs and circumstances. 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. For annual revenue of $1,000 to $100,000, the available grant amount is $5000. What should I look out for? Prior to May 4, the SBA had closed EIDL applications in order to work through the previous application backlog. Save my name, email, and website in this browser for the next time I comment. As an Ebby Halliday client, youll benefit from knowledgeable, respected agents and a team of trusted professionals dedicated to making buying or selling your has not paid and will not pay the companies any compensation whatsoever for the level of service they have committed to providing. Required fields are marked *. Before you agree to a loan, be sure that you are aware of and understand EIDL loan terms and requirements adequately. As real estate agents, we are exactly who these legislations were designed to help. The SBA instituted this rule to serve as an additional deterrent to fraud, waste, and abuse. will provide updates when we receive more information. Eligible supplier costs include expenditures to a supplier pursuant to a contract, purchase order, or order for goods in effect prior to taking out the loan that are essential to the recipients operations at the time at which the expenditure was made. The Covered Period cannot extend beyond September 30, 2021. Must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business. A default loan term of 2 years for loans dispersed prior to the enactment of the PPP Flexibility Act, and 5 years for loans dispersed after the enactment of the PPP Flexibility Act. 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). The federal government, through the SBA, is providing significant relief for small businesses suffering from the impact of the COVID-19 pandemic. 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. Thats why the EIDL loan application is such a pleasant surprise. But you can qualify for those programs, even if you have no employees. real estate agent's Small Business Loans Guide: Before You Start. The EIDL loan application is streamlined for easy completion. Real-estate brokers, are you looking for clarity about what help youre eligible for during the COVID-19 crisis? Any EIDL Advance Amounts previously deducted from a borrowers forgiveness amount will be remitted to the lender, together with interest to the remittance date. (Like an emergency grant that is available within 3 days of applying even if you haven't been approved yet!). Questions for the Real Estate and Construction Applicants with multiple business entities, franchises, locations, etc. 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). 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. 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 Schedule of liabilities for a real estate agent : r/EIDL - reddit For example, if youre qualified to borrow up to $50,000, you can change that amount to the amount you wish to borrow, up to $50,000. 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. After 14 Days it's just $67/month! Real estate agents EIDL 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. 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, 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.. Thank you SIC code 6531 isnt even right for my biz but thats what NAV shows so I guess thats what they will use. 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. 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? We are not affiliated with the Small Business Administration (SBA). You cannot apply for PPP loans on the SBA website. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. For the formula to calculate the maximum PPP loan you are eligible for, see the Application Process section below. We have investments real estate, clothing, watches and other goods. If you run a larger brokerage that wants to use an SBA loan to purchase (or even build) a new headquarters, an SBA 504 loan could be a superior option. Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation. for Real Estate Agents