Government Support Resources During COVID-19: Cash Flow & Financial Assistance FAQ

This page contains information about the government’s program for cash flow and financial assistance during COVID-19. Use the links below to access the Housing FAQ or return to the main COVID-19 Resource Center home page.

Breaking news! Check out these recent updates!

Additional updates to the FAQ sections are coming soon!

New COVID Relief Package passed in December 2020. Read blog for more information or watch video.
Deadline for new round of PPP loan is March 31, 2021! Find out if you qualify for a second round of PPP loans even if you received a loan last year in upcoming NAHREP virtual session with Sara Rodriguez.
Are you a landlord and having trouble with tenants not paying rent? See below for more information on the Emergency Rental Assistant Program! Watch the upcoming session featuring Rob Chevez and click here for where to apply.

Have a question? Use the form below to let us know!

Use the form below to submit your question. We will use this information to update the information presented here as needed.

FINANCES: Income relief from reduction in business or job loss

What is it?
A Small Business Administration loan program that provides low interest, forgivable loans to small business owners.

You can apply through your local lender of an SBA-approved lender in the lender match tool.
A Small Business Administration loan program that provides emergency assistance to both small and large businesses, including forgivable grants of up to $10,000.
A temporary expansion of unemployment insurance benefits for previously ineligible populations, such as independent contractors.
Joint federal and state-run programs that provide cash stipends to individuals who have become unemployed through no fault of their own.
Who qualifies?
Small businesses with fewer than 500 employees, self-employed individuals, and independent contractors.

Also:
Small businesses that received a PPP loan last year, have fewer than 300 employees and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 are eligible for a second draw of PPP.
Small businesses that are located in a low-income community and can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020 or later.
Self-employed individuals, independent contractors, gig-workers, and W2 workers with social security numbers.
Those who have exhausted their regular state benefits, or have lost their jobs for reasons arising from the pandemic but who are not normally eligible for unemployment insurance in their state.
Available until
March 31, 2021
December 31, 2021
March 14, 2021
March 14, 2021
What is it?
A Small Business Administration loan program that provides low interest, forgivable loans to small business owners.

You can apply through your local lender of an SBA-approved lender in the lender match tool.
Who qualifies?
Small businesses with fewer than 500 employees, self-employed individuals, and independent contractors.

Also:
Small businesses that received a PPP loan last year, have fewer than 300 employees and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 are eligible for a second draw of PPP.
Available until
March 31, 2021
What is it?
A Small Business Administration loan program that provides emergency assistance to both small and large businesses, including forgivable grants of up to $10,000.
Who qualifies?
Small businesses that are located in a low-income community and can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020 or later.
Available until
December 31, 2021
What is it?
A temporary expansion of unemployment insurance benefits for previously ineligible populations, such as independent contractors.
Who qualifies?
Self-employed individuals, independent contractors, gig-workers, and W2 workers with social security numbers.
Available until
March 14, 2021
What is it?
Joint federal and state-run programs that provide cash stipends to individuals who have become unemployed through no fault of their own.
Who qualifies?
Those who have exhausted their regular state benefits, or have lost their jobs for reasons arising from the pandemic but who are not normally eligible for unemployment insurance in their state.
Available until
March 14, 2021

PAYCHECK PROTECTION PROGRAM

The Paycheck Protection Program (PPP) is a Small Business Administration (SBA) loan that is designed to help businesses keep their workforce employed during the coronavirus (COVID-19) crisis. These loans may qualify for forgiveness if the employer maintains their payroll and the funds are spent on qualifying expenses.

As of January 11, 2021 the SBA has two programs:

First Draw PPP: PPP loans for those who are receiving a loan through the program for the first time.

Second Draw PPP: For those who have previously received a PPP loan and will use the full amount.

You qualify for a second draw PPP loan if:

  • You previously received a PPP loan and will use the full amount of the loan for authorized purposes.
  • You have no more than 300 employees; and
  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020.
  • For most borrowers, the maximum loan amount for a Second Draw PPP loan is 2.5x the average monthly 2019 or 2020 payroll costs, up to $2 million.
  • For borrowers in the Accommodations and Food Services sector, the maximum loan amount for a Second Draw PPP loan is 3.5x the average monthly 2019 or 2020 payroll costs, up to a total of $2 million.

Funds can help you cover payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

The SBA is currently accepting Second Draw PPP loan applications from participating lenders. You can either work with the same lender you used for your first PPP loan or you can find  another participating lender using the SBA lender match tool. If you wish to start preparing for your application, you can download the following PPP borrower application form to see what kinds of questions they will ask you for when you apply.

At least 60% of your loan must be used for payroll costs. 40% of the loan can be used for expenses outside of payroll. Please note that payments to independent contractors cannot be included in payroll costs.

  • Salaries, tips, and commissions
  • State and local employer payroll taxes
  • Health insurance premiums
  • Employee retirement plans
  • Net profit (if you’re self-employed)
  • Vacation, parental, family, medical, or sick leave

The PPP program recently extended the time period to spend the loan amount from 8 weeks to 24 weeks.

Borrowers will be eligible for loan forgiveness for funds utilized in the 24-week period following the loan origination date for:

  • Payroll costs
  • Interest payments on a mortgage,
  • Rent on a lease
  • Utility payments. The mortgage, lease or utility must have been preexisting prior to February 15, 2020 to qualify.

You can start applying for loan forgiveness as early as eight weeks after you receive the loan.

Please note, you must have maintained employee and compensation levels and the loan proceeds should be spent on payroll costs and other eligible expenses. At least 60% of loan proceeds need to be spent on payroll costs.

The amount forgiven will be reduced proportionally for employee layoffs or wage reductions. If a company has already laid off workers, they have the option to rehire those workers without facing a penalty.

  • Amount forgiven cannot exceed the principal amount of the loan.
  • Payroll costs for employees beyond the $100,000 cap in wages per employee. (Loan will be forgiven for employee salaries up to $100,000 per employee. PPP funds used for employee wages above $100,000 will need to be paid back.)
  • Payroll costs that exceed prior year costs of the same time period.
  • Mortgage pre-payment or mortgage principal payments.

You can still receive loan forgiveness on payroll amounts if it:

  • You are unable to rehire an individual who was an employee on or before February 15, 2020.
  • You are able to demonstrate an inability to hire similarly qualified employees on or before December 31, 2020; or
  • You able to demonstrate an inability to return to the same level of business activity that your business was operating at prior to February 15, 2020.

If 60% of the loan is used on payroll throughout the remained of 2020, the loan will still be forgiven.

If you were approved for your PPP loan before June 5th, 2020 your loan will be due in two years. But if you’re applying to the PPP for the first time right now, or if your loan was issued after June 5, 2020, you have 5 years to pay back your loan. The interest rate of the unforgiven loan will be 1%. The first payment will be deferred for 10 months after the end of the covered period. Currently, the SBA has 60 days to make a forgiveness determination.

You will receive full loan forgiveness if during the 8-24 week covered period following your receipt of the loan:

  1. Your employee and compensation levels were maintained.
  2. The loan proceeds are spent on payroll costs and other eligible expenses.
  3. At least 60% of the proceeds are spent on payroll costs.

Existing PPP borrowers that did not receive loan forgiveness by December 27, 2020 may

  1. Reapply for a First Draw PPP loan if you previously returned some or all of your First Draw PPP Loan funds.
  2. Under certain circumstances, you may request to modify your First Draw PPP Loan amount if you previously did not accept the full amount for which you were eligible.

A business is eligible for a PPP loan if the business has 500 or fewer employees whose principal place of residence is in the United States, or the business meets the SBA employee-based size standards for the industry in which it operates (if applicable).

Sole proprietors, independent contractors, and self-employed persons, with or without employees also qualify.

You can apply to both through any of the 1,800 existing SBA 7(a) lenders or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. It is suggested that you first reach out to your bank where you already have an existing relationship as banks are prioritizing their business clients first. You can also find an SBA-approved lender by visiting the lender match tool on the SBA website.

Important: Only apply for a PPP loan through your local financial institution or a lender from the SBA matching tool. Scammers have been fraudulently contacting small business owners through other means. The SBA will never ask for your Social Security number, bank account information, or credit card details prior to your application.

You will need to apply through a different lender approved through SBA. You can find a list of the most active SBA 7(a) lenders here or use the SBA’s lender match tool.

Not entirely. While SBA lenders are not only working with existing business clients, they did prioritize the applications of current customers during the first wave of the program.

On January 11, 2021, the SBA resumed taking applications after Congress funded another round of First Draw and Second Draw PPP loans. It is suggested that you first apply for an SBA loan through the bank where you have an existing business relationship, if they are an SBA 7(a) approved lender. To find out if your bank is approved to issue PPP loans click here.

Yes, there is no risk in applying with more than one lender. In fact, it’s a good idea to apply to multiple lenders to maximize your chance of obtaining funding. The SBA’s system will accept the first valid application that arrives, and automatically rejects subsequent ones. Any lender that attempts to submit a new application for a tax ID that already has a PLP assigned to it will receive an automatic rejection from the E-Tran system. There is no risk of being flagged for fraud for applying more than once.

Please note that if you if you have multiple businesses with different tax IDs, you can get PPP loans for each of your different businesses. If you have already received a PPP loan, you now qualify for a second draw PPP. Second Draw PPP Loan are approved with the same general loan terms as their First Draw PPP Loan. Second Draw PPP Loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.

The following documents will be required to get an SBA loan. Be sure to prepare all of these documents in a file before you apply.

  1. Details of full-time employees and their payroll costs
    1. Include names and monthly eligible compensation
  2. Proof of payroll, such as:
    1. Form 940
    2. Form 941 Quarterly Tax Filings (2019, 2020 Q1)
    3. Form 944 Annual Tax Filings
    4. 1099s
    5. Form 1040 Schedule C (for independent contractors)
    6. Payroll processor records from a professional employer organization (PEO)
  3. Proof of mortgage or rent, mortgage interest, and utility expenses
  4. Articles of incorporation/organization (including business formation/established date)
  5. Proof of ownership (for all owners who own over 20%)
    1. 2019 Schedule K-1
    2. 2019 Form 1065 if incorporated as a partnership
    3. For single-member LLCs, ownership is verified in personal 1040 Tax Return Schedule C
    4. 2019 IRS Form 1040 Schedule C
  6. Proof that the business is active and in good standing (from your Secretary of State)
  7. 12 months most recent bank statements

For 1099 independent contractors or self-employed individuals applying for a PPP loan, you’ll need IRS 1040 Schedule C.

This has been a common question among many NAHREP members, as many real estate brokerages in our NAHREP family operate as businesses that employs “self-employed” workers. Businesses without employees qualify for PPP loans.

Yes. K1s are partnerships and are treated as a sole proprietorship. Please submit your PPP application as a sole proprietor.

While the PPP funding ran out the first time it passed as part of the CARES Act last year, a new stimulus package was passed in December of 2020 which provided a new set of funding not only for those applying for the PPP program for the first time, but opened up the opportunity for those that had already received a PPP loan to apply for a second round if they met a set of criteria.

Both First Draw and Second Draw PPP applications are currently being accepted through March 31, 2021. For a list of eligible PPP lenders, click here.

Yes, you can apply for more than one PPP loan but you will only be approved for one. The SBA’s system will accept the first valid application that arrives, and automatically rejects subsequent ones. Any lender that attempts to submit a new application for a tax ID that already has a PLP assigned to it will receive an automatic rejection from the E-Tran system. There is no risk of being flagged for fraud for applying more than once.

Please note that if you already received a PPP loan, you can now qualify for a Second Draw PPP loan if you have 300 employees or less and can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020. However, if you have multiple businesses with different tax IDs, you can get PPP loans for each of your different businesses.

Yes, you can get both a PPP loan and an EIDL loan as long as you don’t use the funds to cover the same expenses. For example, you can use the PPP loan funding to cover your payroll and use the EIDL funding to cover other bill payments.

You can apply for loan forgiveness by filling out an application on the U.S. Department of Treasury website and submitting it to your lender. Your lender may accept digital submission or they may require a paper application. It is up to you to call your lender and find out what steps will be required in your particular situation.

Applications for loan forgiveness will be processed by your lender. You will need to fill out a PPP Forgiveness Application form and submit that to your lender.

If you received your loan after June 5th, 2020, you have until 24 weeks from when you received your loan funds to apply for loan forgiveness. After you submit your application for forgiveness, your lender is required by law to provide you a response within 60 days.

The covered period is the period of time by which PPP loan recipients can spend the funds and still qualify for loan forgiveness. Your covered period begins on the day of your PPP loan disbursement and lasts for exactly 24 weeks. The law currently expanded the covered period to 24 weeks, from eight weeks. The 24-week period applies to all loans made on or after June 5, 2020

The December 2020 stimulus package clarified that any cash flow that was forgiven as part of the PPP program should not be included when calculating gross income. Deductions are allowed for otherwise deductible expenses paid with the proceeds of a forgivable PPP loan.

To ensure the PPP funding is targeted to small businesses, the total amount of the loans is limited to $2 million for small businesses with multiple locations.

Your loan forgiveness amount will equal your qualifying payroll costs in your covered period minus any salary or wage reduction, your business’ mortgage payments or rent payments and utility payments during the covered period. You can use the following tool to calculate your loan forgiveness amount.

ECONOMIC INJURY DISASTER LOAN

The Economic Injury Disaster Loan (EIDL) program designed to help businesses withstand substantial economic injury where the business is unable to meet its obligations and to pay its ordinary and necessary operating expenses. EIDLs provide the necessary working capital to help small businesses survive until normal operations resume after a disaster. EIDLs do not replace lost sales or revenue.

Businesses will qualify for a targeted EIDL advance if all of the following apply:

The business is located in a low-income community.

The businesses can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicate meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm a 30% reduction.

The business employs 300 or fewer employees.

SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020 but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted  EIDL Advance.

When Congress appropriated funds for the PPP, those funds were linked to the EIDL program. Since the PPP program was refunded, the Small Business Administration announced that the EIDL program would be reopening.

PANDEMIC UNEMPLOYMENT ASSISTANCE / UNEMPLOYMENT INSURANCE

Unemployment insurance (UI), also called unemployment benefits, is a joint state and federal program that pays cash payments for a fixed number of weeks to individuals who lose their jobs through no fault of their own. If you quit your job, are fired, are self-employed or a gig-economy worker (non-W2 workers), you typically won’t qualify for benefits. These benefits are paid and administered by states and are funded through payroll taxes.

Pandemic Unemployment Assistance (PUA) is a temporary expansion of unemployment insurance benefits provided by the federal government. The expansion includes previously ineligible populations, such as the self-employed and gig-economy workers.

The federal unemployment benefits for workers includes an additional $300 dollars a week and runs through March 14, 2021 and increases the maximum number of weeks to 50 weeks.

If you are laid off from your job or you experience in a reduction of income due to COVID-19, it is likely that you qualify for some type of unemployment benefit. Exact eligibility requirements vary by state.  Find more information about eligibility requirement in your state. It is important to note that the CARES Act expanded unemployment insurance to independent contractors and the self-employed. Even if you are living in a state where real estate was deemed essential, you qualify for unemployment insurance if your income was significantly reduced. Even if you are technically working such as showing people homes but are not closing any homes and therefore not receiving any revenue, you can qualify for unemployment insurance as UI is based on income.

Visit your state’s unemployment website in order to apply. You should not need to complete a separate application for Pandemic Unemployment Assistance, but check your states unemployment website for exact details. Find your state’s unemployment application online.

Yes, even if you are unsure if you will qualify for unemployment benefits, you should apply anyway. There is no harm in applying, even if it turns out you are not eligible.

Not at all. Think about using unemployment benefits the same way you think about using health insurance benefits. You pay a premium every month and, in exchange, you are provided a financial benefit on a later date. Your unemployment benefits are funded by insurance premiums paid by your employer, and in some states the employee as well, through payroll taxes. The program is designed specifically for times like these, when hard working individuals need assistance for reasons that are of no fault of their own.

No, receiving unemployment benefits will not impact future job prospects. Unemployment benefit records are confidential and not a matter of public record. When you apply for unemployment, the state unemployment office will notify your most recent employer(s) during the application process.

In most cases, no, you will not need to repay any unemployment benefits. You will need to claim your benefits as income when you file your taxes. Only in very rare circumstances will you need to repay benefits. One example would be when furloughed employees receive back-pay from their employer when work resumes, in that instance, unemployment benefits will need to be repaid. If you’re an independent contractor or self-employed, you may also qualify for the Paycheck Protection Program. You will only be able to get access to either the PPP loan or unemployment insurance. If you somehow receive both benefits, you may need to pay back one of the benefits when you file your taxes next year.

Possibly. Some states consider the number of claims against a particular employer when determining their unemployment tax rates and fees. However, the majority of what employers pay is determined by the company’s taxable payroll and the amount already paid into the system. Additionally, due to COVID-19 many states are waiving the cost and rating impacts for claims filed during the pandemic.

STIMULUS PAYMENTS

The December 2020 Stimulus Package authorized a one-time cash payment of $600 for every qualifying adult and $600 for every qualifying child in a household. Payment amounts begin to phase out for workers earning over $75,000 per annum ($150,000 if married filing jointly).

This includes those who have no income, as well as those whose income comes entirely from non-taxable programs such as Social Security benefits. For earners over the income threshold, the amount is completely phased-out for those making more than $99,000, ($198,000 for couples). The income qualification will be based on the 2019 tax filing if already filed, or 2018 if not already filed.

The IRS and Treasury have issued all first and second Economic Impact Payments. If you have not yet received your stimulus check, and you meet the income qualifications, you may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return to claim the credit even if you normally don’t file for taxes. For more information on the Recovery Rebate Credit, check here. To check the status of your stimulus payment, you can visit the IRS stimulus payment website tool.

Last March, undocumented immigrants were excluded from getting the first round of stimulus checks under the CARES Act. That also meant that the family members of those married to undocumented immigrants were excluded, even U.S. citizens. Undocumented parents of U.S. citizen child were also no eligible for relief.

The $600 stimulus payments approved in Congress in December 2020 will be extended to households of mixed-immigration status. Any adult who has legal status in this country, including U.S. citizens or permanent residents, will receive a stimulus check. Undocumented relatives will not be included.

If you have a social security number and were excluded from a stimulus check last year due to living in a mixed-status household, you will be entitled to those funds in the form of a tax rebate on your 2020 taxes.

No, your stimulus check will not be taken out of your tax return for next year. The stimulus is technically an advance on a one-time tax rebate that will be applied to your 2020 tax filing. By receiving this one-time payment now, you will not reduce or otherwise change what you receive back or have to pay next year.

No. The stimulus checks are nontaxable and will not be included in your 2020 income.

Yes. If the DACA recipient has a Social Security number they will qualify for a stimulus check.

No. Unfortunately, only individuals with Social Security numbers qualify for stimulus checks.

There is an online portal that allows you to track the status of your second stimulus payment (also known as EIP, Economic Impact Payment). If you are one of those people still waiting, you can visit the IRS’ website to see if your payment has been sent or not. https://www.irs.gov/coronavirus/get-my-payment

Yes! Congress made sure to include mixed-immigration status families this time around after not including them in the first round.

The information provided in the NAHREP COVID-19 Resource Center does not represent legal interpretation, guidance, or legal advice from NAHREP. While efforts have been made to ensure accuracy, this document does not bind NAHREP and does not create any rights, benefits, or defenses, substantive or procedural, that are enforceable by any party in any manner.