New Information on PPP Loan Forgiveness
LOUISIANA REALTORS • April 25, 2020
Payroll Protection Program Forgiveness: Consult with you Certified Public Accountant
As part of the CARES Act, the Paycheck Protection Program (PPP) has allowed for significant aid to many small businesses during the COVID-19 crisis. One of the main benefits of the PPP loan program is the ability to have some or all of the loan forgiven. However, if not utilized pursuant to the CARES Act and related government rules, loan forgiveness may not be possible.
This is why the ability to understand and apply PPP funds received appropriately is critical. Every agent or broker who has received these funds will have a different set of circumstances and concerns. Accordingly, Louisiana REALTORS® encourages you to consult with your Certified Public Accountant about loan forgiveness if you or your office has received PPP funds.
SBA Issues New PPP FAQs
The Small Business Administration, in consultation with the United States Treasury Department, released an updated set of FAQs about the Paycheck Protection Program. The FAQs address concerns about eligibility, acceptance of signatures on behalf of borrowers, borrowers that contract with payroll providers, loans applied for or received based upon previous issued guidance and more. The updated guidance can be found here:
Paycheck Protection Program (PPP) Lending Operations Update – Wednesday, April 29, 2020
SBA and Treasury value all lenders and their small business customers.
To ensure access to the PPP loan program for the smallest lenders and their small business customers, starting at 4 p.m. today EDT through 11:59 p.m. EDT, SBA systems will only accept loans from lending institutions with asset sizes less than $1 billion dollars.
Please note, lending institutions with asset sizes less than $1 billion will still be able to submit PPP loans outside of this time frame. Please also note that lenders with asset sizes greater than $1 billion will be able to submit loans outside of today's 4pm -11:59pm EDT reserved processing time.
This reserved processing time applies today April 29, 2020. SBA and Treasury will evaluate whether to create a similar reserved time again in the future.
SBA and Treasury continue to monitor loan system performance and will continue to provide frequent updates to the lending community.
On Monday, April 27th at 9:30 a.m. CST, the Small Business Administration will resume accepting Paycheck Protection Program loan applications from approved lenders on behalf of any eligible borrower. This does not necessarily mean that your bank will be accepting or processing applications at that time, but that they will be able to do so. If you are planning to apply or have applied for a PPP loan, we encourage you to visit your bank Monday morning and to inquire if they are accepting or processing PPP applications. Be sure to have your application in order along with any supporting paperwork.
For more guidance on applying for the PPP or EIDL, please see:
Louisiana REALTORS® CEO Norman Morris issued the following statement after SpaceX announced plans to invest $100 billion in a new launch facility in Vermilion Parish. The project is expected to create 3,000 direct jobs and more than 8,100 indirect jobs across Acadiana. “SpaceX’s investment is an extraordinary economic win for Louisiana. We congratulate Governor Jeff Landry, Louisiana Economic Development Secretary Susan Bourgeois, Vermilion Parish leaders, and everyone who helped bring this historic project home. The housing and infrastructure improvements needed to support more than 11,000 new job opportunities should generate a huge economic boost to the Acadiana and Gulf Coast region. According to the National Association of REALTORS®, each typical Louisiana home sale generates approximately $88,600 in economic activity. Even if only half of the new SpaceX related jobs lead to a home purchase, the impact would generate nearly half a billion dollars across our state's economy. That improves our tax base and school systems, and ripples through our economy touching builders, bankers, hardware stores, appliance dealers, contractors and so many more. “Housing is not downstream of economic development; it is an essential infrastructure. Louisiana REALTORS® and our partners stand ready to help turn these new jobs into homes, stronger communities and lasting roots in Louisiana. Economic development creates jobs, but housing turns those jobs into homes. Let’s make Louisiana home again, together.” Economic-impact estimates are illustrative calculations by Louisiana REALTORS® using employment projections from Louisiana Economic Development and the National Association of REALTORS®’ estimated economic impact per typical Louisiana home sale. They are not forecasts or recurring annual-impact figures. Enjoy the video below from the Louisiana Department of Economic Development .
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