You Can Start Applying for Loans Again Soon
April 24, 2020
President Donald Trump, in a signing ceremony today, authorized additional funding for coronavirus-related small-business relief programs. The president’s signature clears the way for lending to resume as early as today under two Small Business Administration programs, the Paycheck Protection Program and the Economic Injury Disaster Loan Program. The measures were approved by the Senate Tuesday and the House yesterday.
Under the agreement, the PPP will receive $310 billion in new cash, while the EIDL fund will receive an additional $60 billion ($50 billion for loans and an additional $10 billion in advance grants). The bill sets aside $60 billion of the PPP funding for small and medium-sized community banks, which will provide extra help for self-employed individuals and small businesses that don’t have relationships with larger banks.
The bill also includes $25 billion for coronavirus testing and $75 billion for hospitals.
The National Association of REALTORS® has championed small-business relief efforts on behalf of REALTORS®, says Shannon McGahn, senior vice president of advocacy for the association, who acknowledges the frustration that many members have felt while trying to obtain funding.
“The PPP and EIDL had tremendous demand,” McGahn says. “Although the rollout was rocky, this latest bill should provide enough funds for everyone who needs a loan to get it. REALTORS® still waiting should contact their lender again and keep trying.”
Get the latest COVID-19 updates from NAR.
NAR has a wealth of resources to help REALTORS®, including a new video that not only walks people through the programs but also shares the experiences of REALTORS® who have successfully obtained funding. (For highlights of the video, see REALTOR® Magazine’s story, “Keys to Getting SBA Assistance.”)
Quick Guidance for REALTORS® on the PPP and EIDL
If you’ve already applied for an EIDL: The SBA is processing applications already in its 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 to begin the process as the SBA restores availability.
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 it is 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.
Updated: July 14, 2020