NAR has been working closely with Congress and the Administration to ensure the interests of REALTORS® and their clients are protected in any federal action in response to COVID-19. Many REALTORS® are small businesses, or work with them as clients. In the most recent relief package passed into law, the "Coronavirus Aid, Relief, and Economic Security Act" or CARES Act, there were significant provisions aimed at assisting small businesses during this difficult time. The CARES Act appropriates more than $360 billion total for new Small Business Administration (SBA) programs - the 7(a) Paycheck Protection Program (PPP) loans and the Economic Injury Disaster Loans (EIDL) advance grants program.
Provided below are a number of Q&As to address frequent questions about what these programs are, who is eligible and how to apply. Also, see and share the PPP vs EIDL infographic for differences between the two programs. We continue to learn more about these relief measures daily and will update this document as events warrant.
On April 16, the SBA announced that the funds for both the SBA 7(a) Paycheck Protection Program and the Economic Injury Disaster Loans had been exhausted. NAR had sent a letter(link is external) on April 13 to Congress urging quick action to provide additional funds for these loans, to ensure that they can assist as many small businesses and independent contractors in need as possible. The Senate voted on April 21 to provide an additional $370 billion for PPP loans ($310 billion) and EIDLs ($60 billion), which the House approved on April 23 and the President signed into law on April 24. Both programs are expected to begin taking new applicants and continue processing existing applications by Monday, April 27. If you have an application with the SBA already for EIDL that has not been approved yet, you do NOT need to reapply. If you have an application with an SBA lender for the PPP loan that has not been approved yet, check with your lender to determine if you need to reapply.
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.