We have recommended that all of our agents explore taking advantage of the Paycheck Protection (PPP) program and we advise others in our industry to do the same. Time is of the essence. While the initial round of funding for the program has run out, it is expected that more funding will arrive. We’ve been told it’s been confusing and complicated for many banks to review and accept applications from Realtors since most of them are thinking more along the lines of small business with employees and payroll. Below are details about the Paycheck Protection Program (PPP) program and recent developments.
We have been informed that Credibly, a national lender, has a dedicated application process for real estate agents and is taking applications, even now as we all await news of more federal funding availability for the program. We’re not affiliated with them or endorsing them but are providing information to you about a lender that is focused on real estate agents.
If you’re interested, their real estate-focused application website is https://offers.credibly.com/real-estate. At their site, you can also download their step-by-step guide with “Helpful Hints” for how a real estate agent can apply for the program.
If you are an independent contractor or self-employed individual (like most of you are) you may be eligible for a loan through the Paycheck Protection Program (PPP) loans/grants, and a good portion of this may be forgivable (program highlights and illustrative agent example included below). NOTE: This program is an alternative to Unemployment Compensation – those who applied for unemployment would not be able to also get PPP.
PPP – Highlights (click here to a see PDF from the U.S. Chamber of Commerce for full PPP Independent Contractors Guidelines)
- If you are an independent contractor or self-employed without employees, you can borrow up to 2.5 months’ worth of your 2019 net profit (up to a total of $20,833, based on $100,000 annualized profit)
- 8 weeks of eligible expenses including compensation replacement may be forgiven
- Loan terms: 1% annual interest rate, 2-year term, payments deferred for six months
If you’d like to know more about the Paycheck Protection Program, other areas of relief for independent contractors and how you can best position yourself to be around for the rebound, please reach out to us. We’re here to help!
