CARES Act FAQs - Updated July 22nd
August 13, 2020
NAR has been working closely with Congress and the Administration to ensure the interests of REALTORS® and their clients are protected in any federal action in response to COVID-19.
Many REALTORS® are small businesses, or work with them as clients. In the most recent relief package passed into law, the "Coronavirus Aid, Relief, and Economic Security Act" or CARES Act, there were significant provisions aimed at assisting small businesses during this difficult time. The CARES Act appropriates more than $360 billion total for new Small Business Administration (SBA) programs - the 7(a) Paycheck Protection Program (PPP) loans and the Economic Injury Disaster Loans (EIDL) advance grants program; follow-up legislation in April added an additional $370 billion ($310 billion for PPP and $60 billion for EIDLs) to meet demand for the loans.
Provided below are a number of Q&As to address frequent questions about what these programs are, who is eligible and how to apply. Also, see and share the PPP vs EIDL infographic for differences between the two programs. We continue to learn more about these relief measures daily and will update this document as events warrant.
As of June 17, the PPP loan program still has funding and lenders are accepting applications, and after pausing new EIDL applications from non-agriculture businesses for several weeks, the SBA reopened applications to all eligible businesses on June 15.
Note: On June 5, the “PPP Flexibility Act” was signed into law, increasing flexibility for borrowers in how they can use their PPP loans. This includes lowering the amount required for payroll costs from 75% to 60% and lengthening the period to use it from 8 to 24 weeks, through at the latest December 31. It also increases the repayment period from 2 to 5-years for loans made after June 5 (borrowers who received PPP loans before that date can request a longer repayment period from their lenders). On June 17, the SBA released new guidance and two updated forgiveness forms for PPP reflecting these changes, including an “EZ Application” for businesses with no employees or that meet certain other criteria, which you can read about below.
VIDEO – How To Secure Your Business Through the CARES Act: Hear directly from quick-acting REALTORS®, with businesses of various structure and sizes, who successfully obtained Paycheck Protection Program (PPP) Business Loans and Economic Injury.
- SBA CARES Act FAQs - Updated July 22nd
- Real Estate Transactions, Independent Contractors FAQs - Updated July 14th
- The Intersection of SBA Loans and Unemployment Assistance - Updated June 23rd
- Unemployment Assistance FAQs - Updated May 29th
- Will My Paycheck Protection Program (PPP) Loan be Forgiven? - Updated May 28th
- Mortgage and Personal Finance FAQs - Updated May 28th
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