Click Here To: Learn More About Pandemic Unemployment Assistance
The Treasury Department released new guidance pertaining to how the government will review PPP loan borrowers' good-faith certifications of loan necessity.
SBA, in consultation with the Department of the Treasury, has determined that the following safe harbor will apply to SBA's review of PPP loans with respect to this issue: Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith. SBA has determined that this safe harbor is appropriate because borrowers with loans below this threshold are generally less likely to have had access to adequate sources of liquidity in the current economic environment than borrowers that obtained larger loans. This safe harbor will also promote economic certainty as PPP borrowers with more limited resources endeavor to retain and rehire employees. In addition, given the large volume of PPP loans, this approach will enable SBA to conserve its finite audit resources and focus its reviews on larger loans, where the compliance effort may yield higher returns.
Borrowers that receive loans in excess of $2 million may also be deemed to have made the necessary certification in good faith, based on their individual circumstances in light of the language of the certification and SBA guidance (as will likely be determined under an audit).
NAR will continue to pursue more detailed guidance for loans over $2 million including details on the audit process and what "individual circumstances" will result in a good faith certification.
The Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application.
The Treasury Department and the SBA have released the documents that PPP loan borrowers will need to fill out and provide to their lenders when applying for forgiveness, which you can find here. Of the four documents posted, all borrowers will need to fill out and provide their lenders with two of them: the PPP Loan Forgiveness Calculation Form and the PPP Schedule A. The documents include detailed instructions for borrowers to use, delineate the eligible payroll and non-payroll expenses the loans can be used for, and walk borrowers through step-by-step how to calculate their forgiveness/show that they have met the program's requirements.
The form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
The PPP was created by the CARES Act to provide forgivable loans to eligible small businesses to keep American workers on the payroll during the COVID-19 pandemic. The documents released today will help small businesses seek forgiveness at the conclusion of the eight week covered period, which begins with the disbursement of their loans.
Click here to view the application and instructions
Hear directly from quick-acting REALTORS®, with businesses of varying structure and size, who successfully obtained Paycheck Protection Program (PPP) Business Loans or Economic Injury Disaster Loans (EIDL). Learn how to navigate the Small Business Administration website, which forms to have on-hand when applying, and tips for finding a lender in your area. Don’t wait—funding is limited. Watch video here.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law on March 27, 2020, provides relief to families, small businesses, and individuals who are self-employed and independent contractors. A key provision in the law creates a temporary “Pandemic Unemployment Assistance” (PUA) program that extends unemployment benefits to those not traditionally eligible, including self-employed individuals. Provided below are a number of Q&As to address frequent questions about the program, who is eligible and how to apply, and updates from Advisories issued by the U.S. Department of Labor (DOL) to state workforce agencies implementing the program.
See and share the Pandemic Unemployment Assistance Benefits flyer to find out how to obtain and remain eligible for PUA benefits.
See and share the Pandemic Unemployment Assistance Benefits checklist to learn more about eligibility for self-employed individuals or independent contractors.
See and share the Pandemic Unemployment Assistance Benefits flowchart to learn more about the unemployment benefits for 1099 workers.
View Your Guide to PUA Benefits to find out how to apply.
Check out this interactive map of the US to learn about the status of the program in your state.
Click Here for SBA Cares Act FAQs - Updated 5/18/20
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