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. Are these grants still available? However, there are some PPP lenders, such as community banks, that are willing to take new customers. We will continue to update this FAQ as any rules or other guidance are provided. 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. If you're using thewrong credit or debit card, it could be costing you serious money. Learn more about this loan, including qualifications and how to apply. 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. (Note: The cap is based on 8 weeks worth or $15,385, whichever is less, for an 8-week Covered Period.). 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. 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. Use r/TargetedEIDL for advance/grant issues. 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But what if we told you that the, The Commission Calculator is Available NowWe love the holidays at the Paperless Agent. All users should perform their own due diligence and research. On March 30, President Biden signed the PPP Extension Act. 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 If you are considering a FinTech lender, you will want to determine if the FinTech company is actually submitting applications to a bank or to the SBA, not just collecting your contact information for marketing purposes. 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. As long as you did not receive a larger PPP loan than you are eligible for, this should not have any impact on loan forgiveness. 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. Thank You so much. Eligibility requirements are fairly broad, so chances are good that your business will qualify if designated as one of the following: The 500-employee maximum applies to all the business types listed above. 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. However, for S-corporation owner-employees, owner income replacement is capped at 2.5 times their average monthly employee cash compensation and employer retirement contributions made on their behalf, but employer health insurance contributions made on their behalf cant be separately added because those are already included in cash compensation. Borrowers should calculate their maximum loan based on both options to determine which option will provide them with the largest maximum loan. Subscribe to Real Estate & Land Use Section news Eligible operations expenditures include payments for any software, cloud computing, and other human resources and accounting needs. What should I look out for? The Economic Injury Disaster Loan (EIDL) program is a loan program guaranteed by the SBA. Will this affect my loan forgiveness? SBA Express Loans, SBA 504 Loans, 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. No. But before signing on the dotted line, you should be aware of some of the disadvantages of this loan. 1. The full amount of the loan can be up to $500,000, with interest rates of 3.75% for for-profit businesses. 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. This website does not endorse or charge you for any service or product. Applying for the EIDL does not restrict your ability to also apply for the PPP if you are eligible for both. disclaims any and all liability related to the services provided by the companies on this list. Prior to May 4, the SBA had closed EIDL applications in order to work through the previous application backlog. Weve all come to expect an overly complicated process when it comes to anything associated with government programs. The Act extends the deadline to apply for a PPP loan to May 31, 2021. Therefore, please keep in mind that it is not certain you will receive a grant even if you apply and meet all eligibility requirements. Additionally, borrowers can obtain full loan forgiveness if they were unable to operate between February 15, 2020 and the end of the Covered Period at the same level of business activity as before February 15, 2020 due to COVID-19 related operating restrictions, as long as they do not reduce salaries or hourly wages by more than 25 percent for any employee during the Covered Period compared to the period between January 1, 2020 and March 31, 2020. The CARES Act II signed on December 27 creates a simplified loan forgiveness application process for loans under $150,000. Legislation and regulation Real estate agents Use r/TargetedEIDL for advance/grant issues. 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. 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. The funds can be used for land, improvements, construction, retrofitting, and more. hello@sba7a.loans, SBA Loan ComparisonSBA 7(a) Loan Fees, Rates, and TermsQualifying for an SBA 7(a) LoanSBA Loan Guides per State, Privacy PolicyTerms of UseAdvertiser Disclosure. You should consult with your tax advisor to see how PPP loan forgiveness may affect you and your business. 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. Eligible property damage costs include costs related to property damage due to public disturbances that occurred during 2020 that are not covered by insurance. Yes but borrowers cannot take out an EIDL and a PPP loan for the same purposes. All rights reserved. Press question mark to learn the rest of the keyboard shortcuts. President Jeanne Radsick gives an update on new member for the coronavirus pandemic. About COVID-19 EIDL Economic Injury Disaster Loan Program: What expenses can I spend the PPP loan proceeds on if I want the loan to be forgiven? Real estate agents real estate However, EDD suggests it is safer to do so. Below are some resources and links that you can use to find a PPP lender. I received an email for a loan processor asking for a couple of things from me. Good morning! 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. Government guarantee of a loan means that the government assumes the debt obligation for the loan if the borrower defaults. Your lender may have additional instructions for submitting the PPP loan forgiveness certification. Can I receive a targeted EIDL advance if I have not yet applied for an EIDL? Who Are Specialized Lenders in the SBA 7(a) Loan Program? I need help completing my PPP application. If you think that an EIDL loan may be right for your business, your first step should be to make sure that your business qualifies for a loan. If the eligible entity received an EIDL advance earlier under the CARES Act, the targeted advance allows the entity to receive an amount equal to the difference of what the entity received under the CARES Act and $10,000.