Episode 014 - Locked In - SBA CARES Act and PPP - (Real Estate Appraisal Between The Lines) Podcast Details

Description

Episode 014 - Locked In - SBA CARES Act and PPP

LOCKED IN - Special Edition bringing you updates as we get them. They'll change again...just wait. In the meantime, here is what we know about SBA loans and Paycheck Protection Program, (PPP), designed to help small businesses, agents, and professionals to get through these tough economic times. Stay tuned, since there will be more to come.

SHOW NOTES

03:00 – Doing more podcasts lately to keep you updated.
03:50 – SBA loans, CARES Act, PPP (Paycheck Protection Program)
04:18 – Cate: agents, these programs are not only for yourself. Maybe your clients can benefit from this information as well.
05:10 – This can help you, as the agent, look great to your clients.
05:22 – Fund is set up initially at $349 billion (Current documents in the Senate are trying to increase that amount). Once funds have run out, they are gone, unless more money is added (which is almost guaranteed to happen). Must make application by 06/30/2020.
06:20 – 500 or fewer employees. Had to have been in operation on or before 02/15/2020. Pay payroll taxes.
06:55 – Applicable for any individual that operates as a sole-proprietor/independent contractor/self-employed person.
07:20 – Ineligible people include those with felony in past 5 years and/or behind on other SBA loans.
07:53 – Purpose of this loan/grant is to pay employees. To keep them hired and at the same wage levels as before Coronavirus.
08:30 – Basic loan calculation (more details to this, ask your lender): take past 12 months of wages, divide by 12 to arrive at a monthly average and then multiply the monthly average by 2.5.
09:00 – This loan is for payroll. You must use 75% of the loan toward payroll in order to make the loan forgivable. You can use 25% of the loan toward other costs. Compensation, salary, and tips are included. Benefits are also included.
10:30 – Individual employees with over $100,000 per year income, all income over $100,000 is excluded from the calculation.
10:57 – Loan details: 1% interest rate; maturity date is 2 years (originally was going to be 10 years) from date of disbursement; first six months of payments can be delayed, but interest will still accrue.
13:10 – If the loan is used for forgivable expenses, the loan is forgiven. You get the money for free.
13:40 – Forgivable rules: 75% of the loan must be used for payroll; can’t cut wages or salary, hours or employees.
14:00 – 25% of the loan can be used for mortgage interest payments, lease payments and utility costs.
14:45 – Include this with the stimulus checks for most, the government is trying to keep the economy going and keep people employed.
15:00 – Only $349 billion available right now. Take the loan if you need it, but don’t take it away from others that desperately need it.
16:00 – Talk with your bank as they each have their own processes. All of this is handled through your local bank branch.
16:22 – This is not a federal loan, so the application is not made through the federal government. It is a federally insured loan that is loaned by a bank.
16:45 – No collateral will be required. No personal guarantee required. No application fee or service fees.
17:24 – Final thought from B: Thomas Paine quote, “These are the times that try men’s souls…”. We are facing something that is unprecedented. We can either let it define us, get us depressed, or we can stand up and keep charging on. Show the world we are awesome! Build yourself up!
19:00 – Stay legendary and WASH YOUR HANDS!