Financial & Business Assistance

Updated January  7, 2021

Who is eligible for a Second Draw PPP Loan?

An applicant is eligible for a Second Draw PPP Loan if it is a business concern, independent contractor, eligible self-employed individual, sole proprietor, nonprofit organization eligible for a First Draw PPP Loan, veterans organization, Tribal business concern, housing cooperative, small agricultural cooperative, eligible 501(c)(6) organization or destination marketing organization, or an eligible nonprofit news organization33 that: (i) previously received a First Draw PPP loan in accordance with the eligibility criteria in the Consolidated First Draw PPP IFR:

(ii) has used, or will use, the full amount of its First Draw PPP Loan (including the amount of any increase on such First Draw PPP Loan) on authorized uses under subsection (B)(11) of the  Consolidated First Draw PPP IFR on or before the expected date on which the Second Draw PPP Loan will be disbursed.

October 8, 2020: Treasury, SBA Release Simplified PPP Forgiveness Application for Small Borrowers ($50K or less).  Read the press release.

PPP Frequently Asked Questions: (Last updated 10/13/20)

• 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.

• August 7, 2020: The cap of 1500 applications for the first round of Restore RI grants has been met. It is anticipated that the program will reopen for new applicants at the end of the week of August 10th.
• 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 info@commerceri.com.
• 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:

• NAR’s FAQs
• R.I. Dept. of Labor and Training’s FAQs
• RI REALTORS Unemployment Benefits FAQs.

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!