HOW THE CARES ACT WILL HELP US AGENTS & BROKERS
Kamesha Keesee Signed into law on March 27, 2020, the Coronavirus Aid Relief and Economic Security (CARES) Act provides a wide array of options not just to the people, but also to the agents and the brokers who may be facing financial hardships due to the Coronavirus pandemic. The CARES Act contains special provisions that are aimed at helping people struggling to pay their mortgages or rent. The country has covered $170 billion tax break for the wealthy investors in the real estate industry, and that too was included in the stimulus package. However, what other provisions in the CARES Act that could have an impact on the real estate industry or, how will the CARES act help the agents and real estate brokers?
FINANCIAL SUPPORT AND INCENTIVES Remember, the CAREs Act has a provision that mitigates the loss of businesses to small scale businesses in the country and provides these small-scale businesses with financial support to help them stay afloat. Like all the small business with fewer than 500 employees in the country, many brokerages may qualify for the financial sustenance and backing from the Federal relief package. Some of the financial relief packages offered include;
• The Paycheck Protection Program which provides up to $10 million in loans, but that will largely depend upon payroll. One thing to note however is that these loans are forgivable, but the business has to meet specific criteria, including that 75% of the loan amount given to it must be used to pay the employees. Also note, the application for this relief program are provided through certified lenders and not the SBA itself. • The Economic Injury Disaster Loan program is a program that offers small businesses up to $2 million in loans. These, unlike the PPP, are not forgivable loans but can be used beyond payroll. These loans can be applied directly through the SBA. One thing that real estate firms and professionals have to remember is that independent contractors will not be considered as employees when reporting payrolls; however, that does not mean that lenders cannot bend some rules, some are willing to make exceptions. The realtors who work as independent contractors can independently qualify for the SBA programs individually.
