This week's update includes the latest information on CARES Act, recent changes in Congress regarding mortgages and personal finance and the latest on the Paycheck Protection Program (PPP) with a "Will My PPP Loan be Forgiven" infographic.
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.
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.
On April 16, the SBA announced that the funds for both the SBA 7(a) Paycheck Protection Program and the Economic Injury Disaster Loans had been exhausted. The following week SBA lenders began taking new applications for PPP loans, and the SBA began to work its way through its queue of existing applicants for EIDLs. As of May 11, the PPP loan program still has funding, but the SBA has once again paused taking new applicants for EIDLs (with the exception of agriculture businesses) due to low funding. The SBA also reduced the maximum EIDL amount to $150,000.