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100% Loan Forgiveness
For qualified loan uses like payroll, mortgage interest, rent, and utilities
Payments deferred for 10 months
1% APR for the entire life of your Paycheck Protection Program loan
Spread out payments over a two-year term to make your loan even more affordable
Get a Paycheck Protection Program Loan
Ivy Lender can assist with helping you access Paycheck Protection Program loan faster than your bank! Your electronic application goes straight into underwriting - allowing you to access funds fast.
What Is the Paycheck Protection Program?
The Paycheck Protection Program provides federally-guaranteed loans to eligible real estate professionals. These loans are 100% forgivable and you will never make a payment if you supply our bank with your forgiveness documents before the ten month cutoff. These loans are intended to help Real Estate professionals retain employees and offset any lost wages experienced throughout and after the Coronavirus (COVID-19) crisis.
The National Association of Realtors has created great guidelines for Real Estate Professionals to learn about the program.
Learn More About:
Are Real Estate Agents & Brokers eligible for PPP Round B?
The program is open to both first-time borrowers and borrowers looking for a second loan. Please note that the requirements for first-time borrowers and second time borrowers are different. Continue reading below for a non-exhaustive list of eligibility requirements and other helpful information. Please be advised that qualifying as an eligible business does not guarantee a PPP loan will be offered.
The Federal Government recently allocated additional funding to reopen the US Small Business Administration (SBA) Paycheck Protection Program (PPP).
How Can You Use Your Paycheck Protection Program Loan?
Payroll costs and employee commissions or similar compensations
Insurance premiums and group healthcare benefits during paid sick, family, or medical leave
Mortgage interest payments (but not prepayment or payment of mortgage principal)
Commercial space rent and utilities
Interest on any other debt obligations incurred before the covered period
How is the 25% reduction in revenues calculated?
Real Estate professionals will compare gross receipts of their business before expenses are subtracted. They will compare those for any quarter in 2020 to the same quarter in 2019 to determine if revenues decreased by at least 25%.
What if you weren’t in licensed all of 2019?
1. Your must have been in licensed by Feb. 15, 2020 to be eligible.
2. If you were not licensed during the first or second quarter of 2019 but you were in the third and fourth quarter of 2019, then you may compare any quarter in 2020 with the third or fourth quarter of 2019 to determine whether gross commissions were reduced by at least 25%.
3. If you were not in business during the first, second or third quarter of 2019, but you were in business in the fourth quarter of 2019, then you may compare any quarter in 2020 with the fourth quarter of 2019 to determine whether gross receipts were reduced by at least 25%.
4. A business that wasn’t in business in 2019 but was in business before February 15, 2020 will compare gross receipts from the second, third or fourth quarter of 2020 to that first quarter of 2020 to determine whether gross receipts were reduced by at least 25%.
In addition, there is a simplified calculation that allows the business to compare annual revenue losses. If you were in business for all four quarters of 2019 you will be eligible to compare your annual receipts from 2019 to 2020 to demonstrate the 25 percent revenue reduction, and you will provide annual tax return forms as documentation.
The legislation or subsequent guidance do not define “quarter” and some business owners that operated on a fiscal basis have asked about using non-calendar quarters. This is not addressed in the current guidance.
According to the legislation, for loans of up to $150,000 you can simply certify your revenue loss when you apply, but on or before you apply for forgiveness you will have to produce documentation of that revenue loss. We won’t know exactly what the SBA will consider acceptable until it provides guidance.
What are gross receipts?
The guidance from the SBA defines gross receipts as follows:
"All revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Generally, receipts are considered “total income” (or in the case of a sole proprietorship, independent contractor, or self-employed individual “gross income”) plus “cost of goods sold,” and excludes net capital gains or losses as these terms are defined and reported on IRS tax return forms.
Gross receipts do not include the following: taxes collected for and remitted to a taxing authority if included in gross or total income (such as sales or other taxes collected from customers and excluding taxes levied on the concern or its employees); proceeds from transactions between a concern and its domestic or foreign affiliates; and amounts collected for another by a travel agent, real estate agent, advertising agent, conference management service provider, freight forwarder or customs broker. All other items, such as subcontractor costs, reimbursements for purchases a contractor makes at a customer’s request, investment income, and employee-based costs such as payroll taxes, may not be excluded from gross receipts.”
The amount of any forgiven first draw PPP Loan is not included in a borrower’s gross receipts.
Also note that for nonprofits and veteran’s organizations, the term gross receipts has the same definition as gross receipts under section 6033 of the Internal Revenue Code of 1986.
How much can I get with a second draw PPP loan?
The maximum loan amount for second draw loan is $100,000 per 1099/w2 employee with a cap at $2 million per TAX ID. In all the examples below, the loan amount caps out at $2 million.
As before, an Agent may qualify for up to 2.5 times average monthly payroll costs. (To get the average gross monthly payroll cost you’ll total each month’s payroll and divide by 12.)
You can arrive at this figure either by one of two methods:
Multiply average gross monthly payroll for the 1-year period before the date the loan is made by 2.5 or
Multiply average gross monthly payroll for 2019 or 2020 (borrower’s choice) by 2.5.
New Agents (that were not in business for the 1-year period preceding February 15, 2020) will use a slightly different formula to arrive at the average monthly payroll costs. They will divide the payroll costs paid or incurred by the date they apply by the number of months in which those costs were incurred and multiply the result by 2.5. Again, new Agents must have been licensed by February 15, 2020 in order to be eligible.
Note that all of these methods allow the business to use payroll costs incurred or paid during the applicable time period. (You may incur a payroll cost but not actually pay it until the pay period).
How Can Agents Determine Their PPP Loan Amount?
On your 2019 or 2020 taxes you will look at line #1 on your Schedule C
(The maximum an applicant can account for is $100,000 per employee/1099)
Assume you made $100,000
Average Monthly Payroll Calculation: $100,000 / 12 = $8,333.33
PPP Loan Amount Calculation: $20,833.33
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IMPORTANT NOTE: SBA program details are subject to change. Eligibility rules and amount are both subject to change. Ivy Lender is a financial technology company, not affiliated with the SBA, Dept. of the Treasury, or any government agency.
This site is for informational purposes only. It is not intended to constitute professional advice, including legal, financial, or tax advice, nor is Ivy Lender providing advice on any particular situation. Not a loan offer or a commitment to lend.