Breaking News: Senate Approves New Funding

Hi Everyone – Here is breaking news regarding new funding for the PPP loans.  Please see the bottom of this email regarding guidance on your application or continuing to make application with your local lender for the program.

 

April 21, 2020

 

 

 

Senate Passes Deal to Replenish Coronavirus Relief Funding The U.S. Senate passed legislation Tuesday to replenish funding for several coronavirus small-business relief programs championed by NAR and available to REALTORS®.   The House is expected to take up the measure later this week.   Under the Senate agreement, the Paycheck Protection Program (PPP) will receive $310 billion in new cash, while the Economic Injury Disaster Loan (EIDL) fund will receive an additional $50 billion.   The bill sets aside $60 billion of PPP funding exclusively for small and medium-sized community banks.   "The PPP ran out of money in about two weeks and the EIDL was running on fumes," says Shannon McGahn, NAR's top federal advocate. "These are two of the most extensive rescue programs in our nation's history. We are hearing from brokers around the country who were able to keep their employees on the payroll because of this help and from self-employed members who have been able to keep their businesses afloat."   "Although the rollout was a bit rocky because of the programs' sheer size and demand, more and more banks are coming in line," McGahn says, "and we encourage all our members who qualify to check with their lender again and keep trying. It's worth it."   The Senate bill also contains $25 billion for coronavirus testing and $75 billion for hospitals. Quick Guidance for REALTORS® on the PPP and EIDL: ·         If you've already applied for an EIDL: The SBA is processing applications already in their system on a first-come, first-served basis. You do not need to reapply. ·         If you have not already applied for an EIDL: Check back at the SBA application page once the additional funding is signed into law. The SBA will re-open applications shortly afterwards. ·         If you've already applied for a PPP loan through an SBA lender but have not been approved yet: Check with your lender to see if they are maintaining a queue of applications during the lapse or if you will need to reapply when the renewed funding comes through. ·         If you have not applied yet for a PPP loan through an SBA lender: Have the application form filled out and your documentation ready to provide to your lender. (For businesses with employees, have payroll documentation; for independent contractors, have your 2019 Form 1040, Schedule C, and 1099-MISC.) If you have an existing relationship with an SBA lender, you should go to that lender first once the program reopens, but be prepared to try multiple lenders, which you can find on the SBA site. Get the latest news and guidance on COVID-19 and real estate at nar.realtor/coronavirus.

 

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Instructions for PPP Loan

All – I received this email as a follow up to our Live meeting on Monday morning with Karin Bell from The Bank of Missouri who oversees their SBA lending.  Today bankers received instructions from the SBA and Treasury for the PPP Loan for independent contractors. You are all eligible to apply for this funding.  Don’t wait! Contact a local bank for assistance.  

 

 

Hi Elizabeth

 

We finally got the guidance we are looking for with self-employed and Schedule C filers.

 

Individuals with Self-Employment Income who File a Form 1040, Schedule C

Eligible for a PPP loan if: (i) you were in operation on February 15, 2020; (ii) you are an individual with self-employment income (such as an independent contractor or a sole proprietor); (iii) your principal place of residence is in the United States; and (iv) you filed or will file a Form 1040 Schedule C for 2019.

 

How you calculate your maximum loan amount depends upon whether or not you employ

other individuals. If you have no employees, the following methodology should be used

to calculate your maximum loan amount:

 

Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if

you have not yet filed a 2019 return, fill it out and compute the value). If this

amount is over $100,000, reduce it to $100,000. If this amount is zero or less,

you are not eligible for a PPP loan.

 

Step 2: Calculate the average monthly net profit amount (divide the amount from

Step 1 by 12).

 

Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.

 

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 amount of any advance under an EIDL COVID-19 loan

(because it does not have to be repaid).

 

Regardless of whether you have filed a 2019 tax return with the IRS, you must provide

the 2019 Form 1040 Schedule C with your PPP loan application to substantiate the

applied-for PPP loan amount and a 2019 IRS Form 1099-MISC detailing nonemployee

compensation received (box 7), invoice, bank statement, or book of record that

establishes you are self-employed. You must provide a 2020 invoice, bank statement, or

book of record to establish you were in operation on or around February 15, 2020.

 

I know this is a lot of information, but I wanted to give you something to pass along if you get questions.

 

I am always available if you need any specific questions answered. Feel free to call or email.

 

Karin

 

 

Karin Bell

Senior Vice President SBA Manager

The Bank of Missouri

 

3610 Buttonwood Dr.  Columbia, Missouri

573-874-4700 Ext 21056  |  Cell: 573-489-1527

kbell@bankofmissouri.com, www.bankofmissouri.com

 

3 more things in 33 Seconds

 

RE/MAX - Live it Up! Elizabeth ​Mendenhall​​​ Click to play this video. Elizabeth Mendenhall ​Broker​​​ Phone: 5738762882 elizabethm@remax.net http://www.seeremax.com

 

 

3 things in 30 Seconds

1. PPP Application EVERYONE IS ELIGIBLE (even if you don't have a "payroll") – Contact your local lender or banker and apply NOW Don't wait.
2. Telehealth enrollment - https://www.realtorsinsurancemarketplace.com/telehealth-offer/
3. Lunch and Learn with Jake Beasley, Gibbons Accounting  April 14^th, 12pm

https://us02web.zoom.us/j/393589502

 

 

RE/MAX - Live it Up! Elizabeth ​Mendenhall​​​ Click to play this video. Elizabeth Mendenhall ​Broker​​​ Phone: 5738762882 elizabethm@remax.net http://www.seeremax.com

 

 

Lenders on CARES Loans, Telehealth, EFT

https://www.nar.realtor/realtor-benefits-program/personal-insurance/members-telehealth

RE/MAX - Live it Up! Elizabeth ​Mendenhall​​​ Click to play this video. Elizabeth Mendenhall ​Broker​​​ Phone: 5738762882 elizabethm@remax.net http://www.seeremax.com

 

 

Direct Deposit

To All Agents:

 

I’ve received questions from several of you regarding direct deposit.  We are excited about this new procedure but we are still in the process of gathering information and testing our system.  We hope for a “go live date” sometime in April.  In the meantime, checks will be printed and placed in your office mail slot.  If you’d prefer we mail your commission checks until Direct Deposit is in place, please send me an email and I’ll be glad to mail it.

 

If you have not yet Docusigned the form from Jamie, please do so at your earliest convenience.

 

Thanks and stay safe!

 

Mark