Government Aid For Your Clients Or Your Business
COVID-19 Legislative Update for Commercial Real Estate
Paycheck Protection Program Application and Guidelines
While the Paycheck Protection Program closed on August 8, CCIM Institute is advocating for its extension with our coalition partners. Businesses with 500 or fewer employees, sole-proprietorships, independent contractors, and self-employed individuals were eligible for Small Business Association 7(a) Paycheck Protection Program ("PPP") loans. Funding remains available for PPP loans.
The Paycheck Protection Program Flexibility Act was enacted on June 5 to increase flexibility in the Paycheck Protection Program by:
- Decreasing the 75% payroll requirement to 60%. Loan recipients now must use at least 60% of the loan for payroll costs and can utilize up to 40% for eligible operational expenses, including rent, mortgage payments, utilities, and interest on loans.
- Increasing the amount of time borrowers have to use their loans from eight to 24 weeks.
- Extending the deadline to rehire workers in order for their salaries to count towards loan forgiveness from June 30 to December 31, 2020.
- Easing the repayment term for parts of the loan that are not forgiven from two to five years.
View PPP Application
Treasury, SBA Release PPP Loan Forgiveness Application
Sept. 30 Update: SBA will begin processing PPP loan forgiveness applications following a delay. The SBA is expected to quickly approve forgiveness applications for loans less than $2 million, with reports that the backlog may be cleared in as little as two weeks. PPP borrowers have 10 months from the end of their loan’s covered period to apply for forgiveness before any payments are due on the loans.
The Treasury Department and the Small Business Administration have released the documents that Paycheck Protection Program loan borrowers need to fill out and provide to their lenders when applying for forgiveness.
The agencies have created a streamlined “EZ Forgiveness Application” for borrowers who:
- Are self-employed and have no employees; or
- Did not reduce the salaries or wages of their employees by more than 25% and did not reduce the number or hours of their employees; or
- Experienced reductions in business activity as a result of health directives related to COVID-19 and did not reduce the salaries or wages of their employees by more than 25%.
View EZ Forgiveness Application
View Standard Forgiveness Application
NAR has produced a short
video reviewing how to complete the PPP EZ forgiveness application form.
CARES Act Guidance
The Paycheck Protection Program is part of the $2 trillion Coronavirus, Aid, Relief, and Economic Security (CARES) Act, which allocated $350 billion for this new SBA 7(a) loan program. The CARES Act also expanded the existing
SBA Economic Injury Disaster Loan (EIDL) program and allowed small businesses to receive advances of up to $10,000. While Economic Injury Disaster loans are still available, funding for the $10,000 forgivable advances has run out and therefore are no longer available.
See the CCIM/IREM CARES Act
summary below for an outline of the provisions impacting the commercial real estate industry and individuals. For in-depth guidance, please visit NAR’s
SBA CARES Act FAQs page.
The CARES Act provisions provide further relief in its tax provisions, including an employee retention tax credit.
The Real Estate Roundtable CARES Act Tax Policy Guide details the tax implications of the CARES Act.
IRS and Treasury Department
Deadline Extended for 1031 Exchanges: The IRS has issued guidance that indicates that the 45-day and 180-day deadlines for 1031 like-kind exchanges that would have expired from April 1 to July 14 will now expire on July 15. Watch for further details soon.
Opportunity Zones Relief: The IRS has provided coronavirus-related relief for Opportunity Zone investors and Opportunity Funds. Such relief includes five specific changes and clarifications, including extending the deadline to December 31, 2020 if the 180-day investment period to roll gains into an Opportunity Fund would have expired between April 1 and December 31, 2020. The IRS's
announcement of these changes provides additional details.
Deadline to File and Pay Taxes Extended: A three-month extension has been made for tax filing and payments. Individuals will be able to defer up to $1 million without interest or penalties, and corporations can defer up to $10 million.
FEMA Flood Insurance Renewal Extension: FEMA is extending the grace period to renew flood insurance policies from 30 to 120 days. If a policy has an expiration date between February 13, 2020 and June 15, 2020, then the NFIP insurer must receive the appropriate renewal premium within 120 days of the expiration date to avoid a lapse in coverage. Likewise, if a policyholder receives an underpayment notice dated between February 13, 2020, and June 15, 2020, then the NFIP insurer must receive the additional premium amount requested within 120 days of the date of the notice.
Federal Reserve Main Street Lending Program: On June 15, the Main Street Lending Program became operational to support small and medium-sized businesses that were in good financial condition before the onset of the crisis. Under the program, the Federal Reserve will support up to $600 billion in loans to eligible businesses. The loans will be made by federally-insured banks, savings associations, and credit unions that apply to participate in the program. The minimum loan amount is $250,000, and the program is currently available until September 30, 2020. Eligible banks may originate new Main Street loans or use them to increase the size of existing loans to businesses. View NAR's reference guide on the program
Commercial Paper Funding Facility: The Federal Reserve Board will establish a Commercial Paper Funding Facility (CPFF) to support the flow of credit to households and businesses.
Facility to Facilitate Loans for Paycheck Protection Program: The Federal Reserve Board will establish a facility to facilitate lending to small businesses via the SBA's Paycheck Protection Program (PPP) by providing term financing backed by PPP loans.
Federal Accounting Standards Board
On June 3rd, the Federal Accounting Standards Board (FASB) issued
guidance on a one-year delay for the implementation of the new accounting rules on revenue recognition and leases for some private companies and nonprofits. Implementation was delayed to provide companies with some administrative relief as they cope with the impact of the coronavirus.
CCIM Institute Member Resources
Complimentary Designee-Only Refresher Courses Now Available
To ensure designees are as prepared as possible to tackle the tough challenges ahead, the institute is offering free designee-only core refresher courses with optional CE credit. Fill out the online form below to register.
Site To Do Business Resources and Professional Development
To assist in your professional development during this time we have developed a series of short videos that highlight some of the new capabilities available in your Site To Do Business toolkit.
VISIT LEARNING CENTER
CCIM Career Center Talent Kit
The new SelectLeaders Talent Kit is designed to help real estate job seekers navigate the CCIM Career Center.
Download the Talent Kit (PDF)
Visit the Career Center
Discover CCIM.net Email with Google G Suite
CCIM designees get a custom CCIM.net email along with Google G Suite tools for working on the go. G Suite is a set of apps that allow you to collaborate with associates, quickly share information with clients, and get work across devices - wherever you are. To get acquainted with a specific G Suite product, sign up for our on-demand webinars or visit the tips and tricks pages that correspond to each product.
NAR’s Right Tools, Right Now
The National Association of REALTORS® Right Tools, Right Now initiative makes new and existing NAR products and services available for free or at significant discounts and is available to REALTORS® and REALTOR® Associations.