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

Paycheck Protection Program application deadline has been extended to August 8! Read more about how to apply
Economic Injury Disaster Loans are now available for non-agricultural businesses. Click here for more information on how to apply. Your business could be eligible for a grant of up to $10,000!
Applying for loan forgiveness for PPP? Tune in to our recent virtual session on maximizing PPP loan forgiveness.
Have a question? Click here 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.

Cash Flow & Financial Assistance: 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 or 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. This program includes an across-the-board increase in benefit amounts until July 31, 2020.
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.
Small businesses with fewer than 500 employees, self-employed individuals, and independent contractors, located in a declared disaster area. All of U.S. applies during COVID-19.
Self-employed individuals, independent contractors, gig-workers, and W2 workers with social security numbers.
W2 workers with social security numbers.
Available until
August 8, 2020
Always available
December 31, 2020
Always available
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 or an SBA-approved lender in the lender match tool.
Who qualifies?
Small businesses with fewer than 500 employees, self-employed individuals, and independent contractors.
Available until
August 8, 2020
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 with fewer than 500 employees, self-employed individuals, and independent contractors, located in a declared disaster area. All of U.S. applies during COVID-19.
Available until
Always available
What is it?
A temporary expansion of unemployment insurance benefits for previously ineligible populations, such as independent contractors. This program includes an across-the-board increase in benefit amounts until July 31, 2020.
Who qualifies?
Self-employed individuals, independent contractors, gig-workers, and W2 workers with social security numbers.
Available until
December 31, 2020
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?
W2 workers with social security numbers.
Available until
Always available

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.

The law was recently changed and now 60% of the loan must be spent on payroll (as opposed to the previous 75% requirement.) 40% of the loan can be used for expenses outside of payroll.

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

The PPP program recently extended the time period to spend the loan amount from 8 weeks to 24 weeks. While businesses will still need to spend the money on payroll and authorized expenses, you now have until the end of 2020 to do so. December 31, 2020 is the final cutoff date for eligible expenses. For loans being disbursed July 16 and later, this means that you will not be able to take full advantage of the 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.

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 on or after June 5th, you have five years to pay back the unforgiven amount. If your PPP was approved prior to June 5th, you have the option of repaying back your loan in 2 or 5 years at your request. The interest rate on the unforgiven loan will be 1% .The first payment will be deferred for six months after the SBA makes a determination on forgiveness. Currently, the SBA has 60 days to make a forgiveness determination.

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 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 prioritized the applications of current customers during the first wave of the program. On April 27, 2020, the SBA resumed taking applications after Congress funded a round two of the PPP program. During round two, applicants have had better luck being funded even by financial institutions that were not their own. However, 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. Find out if your bank is approved to issue PPP loans.

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 already received a PPP loan, you won’t be able to get a second one. However, if you have multiple businesses with different tax IDs, you can get PPP loans for each of your different businesses.

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 it is true that round one of the Paycheck Protection Program ran out shortly after the CARES Act passed, Congress and the White House replenished the funds to the PPP and became available as of April 27, 2020. As of the end of May 2020, there are still funds available for the PPP.

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 won’t be able to get a second one. 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 a PPP loan prior to June 5th, 2020, you have the option of applying for loan forgiveness as soon as 8 weeks or as late as 24 weeks from the time you received your funds. 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.

If you got their funds before the PPP Flexibility Act, then they have the option of doing it as early as 8 weeks from the time they received their funds.

After you submit your application for forgiveness, your lender is required by law to provide you with 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 you 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. Borrowers that received loans before June 5 can still choose to elect an eight-week period.

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.

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 through the CARES Act. The expansion includes previously ineligible populations, such as the self-employed and gig-economy workers. It also includes an additional 13 weeks of benefits and $600 per week in payments, on top of what each state already provides. The additional $600 in benefit amounts is available until July 31, 2020.

The PUA will be available for up to 39 weeks of benefits starting with weeks of unemployment beginning February 2, 2020, through the week ending December 26, 2020, depending on when you became directly impacted by the pandemic. This is a new 13-week federal extension for those who run out of their regular state-provided UI benefits (maximum 26 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.

The benefit amount you receive will depend on your state’s unemployment insurance laws and your previous income. Under the CARES Act, the federal government provides an additional $600 per week for up to six months on top of your state’s benefit, whatever that may be. Additional benefit amounts are due to expire on July 31, 2020. All benefits are provided through your state unemployment office.

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 CARES Act authorized a one-time cash payment of $1,200 for every qualifying adult and $500 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.

Only individuals with Social Security numbers are eligible for stimulus payments. If you or your spouse files taxes using an Individual Taxpayer Identification Number (ITIN), the entire household is unfortunately disqualified from receiving payment

Stimulus payments made via direct deposit were received in April and check payments have been processed and mailed out in early May. If you have not yet received your stimulus check, it’s possible that your household may not be eligible. To check the status of your stimulus payment, you can visit the IRS stimulus payment website tool.

Unfortunately, mixed-status households have not been receiving stimulus payments. While there is nothing in CARES Act that precludes individuals with Social Security numbers from receiving benefits if they file their taxes with a spouse that has an ITIN, the department of treasury has interpreted the law to exclude all mixed-status households.

Please note, if you have a dependent with an ITIN, such as a parent or child, this will not disqualify you from receiving a stimulus check, but children without Social Security numbers will not receive the additional $500 in payment.

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 funds under the CARES Act. Some states, such as California, have taken the lead in providing relief for immigrants who do not qualify for federal relief, including those who are undocumented.

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.