Hello, Alaska REALTORS®!
Yesterday afternoon several members of the Alaska Board of REALTORS®, the Government Affairs Director, and our Lobbyist had an opportunity to meet with the Economic Stabilization Team for the State of Alaska. The members of the team consisted of Lt. Governor Meyer, Governor Parnell, and Senator Begich.
We focused on providing clear guidelines for real estate professionals to move forward in assisting consumers in completing pending transactions and provided for safe provisions for moving forward with future purchases.
The meeting was positive, and the team seemed welcoming of the proposed guidelines with a few suggested changes. The Stabilization Team shared they are working in “real-time” with the Governor’s office. So, it is our hope we will have a decision soon on the proposed guidelines.
To all the affiliates who reached out to lend support, Thank-you!
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Financial Assistance Available to REALTORS® and Small Businesses
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Guide to Financial Relief for Individuals and Small Businesses will continue to be an excellent resource for REALTORS® and brokerages looking to navigate government resources available in light of COVID-19 economic losses.
The guide includes links to the agencies that are administering the various programs. The best way to find out what and when resources are available is to visit those links. The reality is that even though Congress has authorized benefits, it still takes time for the agencies charged with administering those benefits to establish protocols and make resources available.
Here’s what we know concerning the two programs we’ve received the most questions about:
Small Business Loans (Including for Independent Contractors)
· More information about the Small Business Administration loans made available by Congress, including “Paycheck Protection Loans” (forgivable if used for maintaining payroll) and expanded “Economic Injury Disaster Loans,” are already available. Learn more at the Small Business Administration. The deadline to apply for these resources is June 30, and specific instructions from the U.S. Senate Committee on Small Business and Entrepreneurship on how to apply can be found here.
· Senator Marco Rubio has put out what we have found to be the best summary of the new loan program and how to apply. Note that, as with other SBA products, you may be able to apply for these loans through your financial institution rather than the government.
Unemployment Assistance for Independent Contractors
· The new “Pandemic Unemployment Assistance Program” which makes the self-employed, independent contractors and gig workers eligible for up to 39 weeks of unemployment benefits (and increases unemployment benefits by up to $600 per month for all eligible beneficiaries) will be administered by the Oregon Employment Department and information will be available here. Today, the Employment Department updated their website with the following
“On Friday, March 29 the CARES act was signed into law, which will expand Unemployment Insurance benefits. We are working to incorporate these new changes into our resource guides, and will issue a news release and additional online announcements about pandemic unemployment assistance and unemployment benefit extensions as we receive guidance from the U.S. Department of Labor.”
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Application for the SBA Paycheck Protection Program
Today, the Treasury Department released the application for the SBA 7(a) Paycheck Protection Program (PPP) loans, which you can access here. It also released a summary guide of the program for borrowers, here.
Small businesses and sole proprietors can apply beginning this Friday, April 3; independent contractors and the self-employed can apply beginning next Friday, April 10. Applications go directly to SBA lenders, which you can find through the SBA site here.
This is a new program created by the CARES Act to provide small businesses (500 employees or fewer), sole proprietors, and the self-employed/independent contracts who are impacted by COVID-19 with loans of 2.5x their average monthly payroll expenses (up to $10 million) to cover payroll, mortgage interest, rent, and utilities for an 8-week period during the crisis. Employers who maintain payroll levels of at least 75% of their average and the same number of employees are eligible for loan forgiveness. You can learn more about the loan program in NAR's CARES Act FAQ document and the CARES Act Summary.
There are still some questions as to if a small business should include independent contractors in its employee numbers and payroll costs; what we know for certain is that independent contractors can apply for their own 7(a) PPP loans. We are seeking clarity on that question from the Treasury and the SBA and will have the answer soon.
NAR will be posting a SBA-Program specific FAQ focusing on the 7(a) PPP loans and the Economic Injury Disaster Loans, which you can apply for here. (Businesses can apply for both, but the funds cannot be used for the same purposes, and the $10,000 advance grant is not forgiven if you also receive a forgivable PPP loan.)
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During this unprecedented time, take the opportunity to improve your knowledge and skills as a REALTOR®.
FREE designation courses offered by the
National Association of REALTORS®.
https://www.onlinelearning.realtor/A/Category/Index/40/ce-approved-courses
Several of the courses provide state continuing education credits as well!
RRC Spring Classes Are Being LIVE Streamed!
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Tax Strategies for the Real Estate Professional
April 2, 2020, 8:00AM - 5:00PM
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Increase Wealth with Rentals and Other Investment Properties
April 3, 2020, 8:00AM - 5:00PM
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