Covid-19 Stimulus Consulting For Realtors

The CARES Act offers many benefits to Realtors.The three largest benefits Realtors can take advantage of now are:

Unemployment, the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL)

Unemployment Benefits

Under the new CARES act, independent contractors receiving 1099’s and other self-employed workers now qualify to apply for unemployment benefits.Unemployment must be applied through your states unemployment website.If you are paid on a 1099, you should mark independent contractor.If you are and S-corporartion (PA/PC) and pay yourself a salary you are an employee.

In addition to receiving your state unemployment you will also qualify for the additional federal unemployment which can be up to $600 per week.

** If you are still working and expect to be receiving commission income, DO NOT APPLY FOR UNEMPLOYMENT.

If you have already applied for unemployment, you can still apply for one or both of the stimulus programs below: Once you receive your funding you can start paying yourself.

Payroll Protection Program(PPP)

The PPP allows Realtors to receive up to 2.5 times there average monthly income. Unlike unemployment, you should continue working and trying to earn commissions while you are receiving the PPP. The PPP offers a FORGIVABLE loan which needs to be used to pay your employees, which for Realtors is paying yourself! Whether you are an independent contractor and receive a 1099 in your own name, or operate as an S corp/PA, you can apply for the PPP

Click here to learn more about the PPP and see if you qualify for this program.

Economic Injury Disaster Loan & Grant – (EIDL)

The EIDL offers a low interest (3.75%) 30 year fixed loan to small businesses.(Realtors qualify to apply for the EIDL).You will need to know your Gross income for 2019 in order to apply.The EIDL has no prepayment penalty so we are suggesting that our clients apply in order to have access to additional capital for their real estate business.No collateral is required and any loan below $200,000 does NOT require a personal guarantee.By applying for the EIDL, you are also given the opportunity to apply for a grant (not a loan) for up to an additional $10,000.You can use funds from the EIDL to pay operating expenses and pay for any operating expenses for your business. Including employee payroll (meaning you can use these funds to pay yourself (as you are self-employed). Click here to learn more about the EIDL and Grant