COVID-19 Relief Bill Update
April 28, 2020
Additional funding is now available for the coronavirus small business relief programs. On Thursday, April 23, Congress passed new coronavirus relief legislation that provides additional funding for the two Small Business Administration (SBA) programs, the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) Program. President Trump signed the measure into law on Friday, April 24, and lending has officially resumed for the SBA programs.
Through this legislation, the PPP will receive $310 billion in new funding, and the EIDL will receive an additional $60 billion. The PPP funding contains a $60 billion set-aside specifically for small to mid-sized community banks, which should provide additional support for self-employed individuals and small businesses that do not have relationships with larger banks. The relief bill also includes $25 billion for coronavirus testing and $75 billion for hospitals.
SBA GUIDANCE FOR REALTORS®: If you have questions about your eligibility for either of these programs, see Alabama REALTORS® CARES Act FAQs here.
- If you have already applied for an EIDL: The SBA is processing applications already in their system on a first-come, first-served basis. You do not have to reapply.
- If you have not already applied for an EIDL: The SBA is currently not accepting new applications, but they will provide further information on the availability of the EIDL portal to receive new applications as soon as possible. Keep checking the SBA application page here, and apply as soon as the application is available. These programs are administered on a first-come, first-served basis.
- If you have already applied for a PPP loan through an SBA lender but have not yet been approved: Check with your specific lender to see if they are maintaining a queue of applications during the lapse or if you will need to reapply when the renewed funding comes through.
- If you have not applied yet for a PPP loan through an SBA lender: Apply immediately. If you have an existing relationship with an SBA lender, you should go to that lender first once the program reopens, but be prepared to try multiple lenders, which you can find on the SBA site here. You should have an application form filled out and your documentation ready to provide to your lender.
- For businesses with employees, have payroll documentation.
- For independent contractors, have your 2019 Form 1040, Schedule C, and 1099-MISC.
UNEMPLOYMENT AVAILABILITY: Unemployment continues to be available, and REALTORS®, even those who work as independent contractors, may qualify. The Alabama Department of Labor (ADOL) reported that 331,670 Alabamians have filed claims over the past four-week period. If you have questions about unemployment benefits, see Alabama REALTORS® COVID-19: Unemployment & Benefits Update from last week here with FAQs by REALTORS®, or visit the Alabama Department of Labor’s unemployment benefits page here.
Chart from the National Association of REALTORS®