PPP Last Chance to File; Benefits and Forgiveness Changed

Last chance for brokers to apply for PPP, deadline is June 30th. Many changes have made it more beneficial to independent contractors to obtain the loan, and to have automatic forgiveness if used for key expenses.  Here is a fact sheet from NAR Download(link is external) (PDF: 917 KB). In summary, the PPP loans are intended to cover expenses for a business during any 24-week period between February 15, 2020 and June 30, 2020 (borrowers who received loans before June 5 can opt for either an 8- or 24-week period). They can be used for payroll costs, rents, mortgage interest, and utilities.  Independent contractors can base their loans on their 2019 net earnings, as shown on their 2019 Form 1040 Schedule C, line 31.  Up to 100% of the PPP loans are forgivable. Small businesses with employees and independent contractors have different forgiveness specifications though. For details, check out the link above, or talk to your lender.  Note that on June 17, the SBA released new guidance and two updated forgiveness forms for PPP reflecting these changes, including an “EZ Application(link is external)” for businesses with no employees or that meet certain other criteria, which you can read about below.  VIDEO – How To Secure Your Business Through the CARES Act: Hear directly from quick-acting REALTORS®, with businesses of various structure and sizes, who successfully obtained Paycheck Protection Program (PPP) Business Loans and Economic Injury.