Updated August 9, 2020
- SBA will not be able to process any new PPP loan applications after Saturday, August 8, 2020.
- Learn what you need to know about PPP loans and forgiveness in this new NAR video.
Major Updates to Small Business PPP Loan Program – See NAR’s June 17, 2020 News Release. The Senate cleared changes to the popular Paycheck Protection Program on Wednesday, June 3rd, that will allow small businesses more flexibility in using the rescue loan funds. The bill, which passed the House last week on a 417-1 vote would extend an eight-week period — when proceeds must be spent for loans to be forgiven — to 24 weeks or until the end of the year, whichever comes first. Businesses would also have as long as five years, instead of two, to repay any money owed on a loan, and they could use a greater percentage of proceeds on rent and other approved non-payroll expenses. Here is the updated application. Learn more.
PPP Questions: (Last updated 7/27/20)
- If the tenth calendar day is a Saturday, Sunday, or legal holiday, the period continues to run until the end of the next business day
- The ten calendar-day period described above begins on April 28, 2020.
- The eight-week covered period began on the date of first disbursement.
- Notwithstanding this limitation, lenders are not responsible for delays in disbursement attributable to a borrower’s failure to timely provide required loan documentation, including a signed promissory note. Loans for which funds have not been disbursed because a borrower has not submitted required loan documentation within 20 calendar days of loan approval shall be cancelled by the lender, subject to the transition rules above. When disbursing loans, lenders must send any amount of loan proceeds designated for the refinance of an EIDL loan directly to SBA and not to the borrower.
- Economic Injury Disaster Loans (EIDL) are offered by the Small Business Administration and available to both small businesses and independent contractors. You may be able to get an advance of up to $1000/employee. No payments are required to repay the loan for the first 12 months. The interest rate for these loans is 3.75 percent. Find out more on the SBA website.
- SBA is providing an automatic deferment on existing SBA Disaster Loans through the end of 2020 to help borrowers still paying back loans from previous (pre-Covid-19) disasters.
The Restore RI grant application is now available at commerceri.com/about-us/restore-ri. The program provides $50M in grants for small businesses that have been most severely impacted by the COVID-19 pandemic. Eligible small businesses can apply for grants of up to $15,000. Grants will be calculated based on whether the business is in a severely impacted industry, the number of full-time employees, and the degree of revenue loss. Detailed eligibility requirements, Frequently Asked Questions, a grant estimator calculator, and a list of required documents needed for applying can be found on www.commerceri.com. Watch the July 30 Commerce RI Facebook Live event.
- NEW 6/8/20: The Providence Commercial Corridor Micro-Business Loan Fund offers eligible business applicants loans of $500 to $5,000 to pay for physical alterations required under state reopening guidelines, as well as personal protective equipment for employees. Recipients will also receive technical assistance in small business management, financial coaching and training through the Center for Women & Enterprise.The pilot program is limited to micro-businesses in commercial corridors of Broad, Cranston, Broadway and Westminster streets and Elmwood Avenue. Businesses must have fewer than 10 full-time employees and earn less than $250,000 annually.The loans have two-year terms, with options for zero interest if repayment begins as soon as the loan is issued, or a 2% interest rate after a six-month grace period.Applications are available on the City Council website.
- Free PPE and supplies for small businesses
- If companies have questions regarding access to capital and other lending options, please call the RI Small Business Hotline at (401) 521-HELP or e-mail firstname.lastname@example.org.
- You can also find an array of non-SBA loans on Commerce RI’s website.
- Microsoft Providing Six Months of Office 365 Tools for Free – Learn more.
GSEs and credit update
This morning the FHFA announced that it would allow the GSEs to extend credit to home buyers who took forbearance under certain conditions.
- Borrowers who take forbearance, but continued to make their mortgage payments or reinstated their mortgage and are therefore current on their mortgage are eligible to refinance or buy a new home at any time
- Borrowers who do not make payments in forbearance, but make three consecutive payments under their repayment plan, or payment deferral option or loan modification are also eligible to refinance or buy a new home.
- The announcement leaves unclear what the effect of a missed payment is on the borrower’s access to credit. NAR has requested clarity from the FHFA.
The FHFA also announced that it would extend the period for mortgages in forbearance that the GSEs would be eligible to purchase. An issue impacting lenders at the moment is that many loans go into forbearance after origination, but before the originator sells the loan to Fannie, Freddie, or the FHFA. A few weeks ago, the FHFA allowed the GSEs to begin to purchase these loans for a limited time, but for a steep fee. The new timeline is that the note date must be on or before June 30, 2020, as long as they are delivered to the Enterprises by August 31, 2020
These changes should help to clarify the impact of forbearance for those who have taken it or are considering. Furthermore, ti should help ease concerns about these home buyers ability to play a part in future home sales.
For information on new tax extension deadlines applicable to 1031 Like-Kind Exchanges, Opportunity Fund investments and estimated quarterly tax payments, please visit our Real Estate Specific Updates page.
The RI Department of Business Regulation has applications for unemployment insurance on the DLT website. More questions about unemployment insurance benefits? Please see the FAQ resources below:
Information REALTORS® need to know:
This page and the links below will be continually updated as information becomes available.
- COVID-19: Most Recent News & Updates
- RIAR/MLS Office/Staffing/Event & Class Cancellations
- Real Estate Specific Updates: Federal, State and Municipal Resources
- COVID-19 FAQs for REALTORS
- Unemployment Benefits FAQs for REALTORS
- COVID-19 Amendment to the Purchase and Sales Agreement Revised 4/7/
- RIAR Open House Advisory
- RI REALTORS Recorded Virtual Town Hall Webinars: Timely topics covered by industry experts. Watch now!