Treasury Releases Paycheck Protection Program Loan Applications

The Treasury Department released the application for the SBA 7(a) Paycheck Protection Program (PPP) loans, which can help small businesses maintain employment through loans that are forgivable over time under the mandated circumstances. They also released a summary guide of the program to help borrowers understand the program’s rules.

  • 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 should be sent directly to Small Business Administration (SBA) lenders, which can be found using a search tool on SBA’s website.

The Paycheck Protection Program is a new program created by the just-passed CARES Act to provide small businesses (500 employees or fewer), sole proprietors, and the self-employed/independent contractors impacted by COVID-19 with loans of 2.5-times 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 whether a small business should include independent contractors in its employee numbers and payroll costs,” says NAR’s Senior Policy Representative, Commercial Issues Erin K. Stackley, Esq. “What we know for certain is that independent contractors can apply for their own 7(a) PPP loans. (NAR is) 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 — the $10,000 advance grant is not forgiven if you also receive a forgivable PPP loan.

Find NAR’s SBA CARES Act FAQs here.
More information can be found here.

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Professional Photography and Staging for Listings Now Permitted

According to Washington REALTORS®, this information is based on clarification requests that were submitted by photography and staging companies to the Governor’s office. Those companies have requested that we forward this clarification to our members. See below for the revised FAQ document provided by Washington REALTORS®.

REVISED FAQs:

Can professional photographers take photos and create virtual tours during the Stay Home, Stay Healthy Order? (NEW April 1, 2020)

Yes. Information concerning real estate services indicates that professional photography for listings is now permitted. Like all other in-person activities, photos and virtual tours must be by appointment, a total of no more than two people may be at property at any one time, and those two people must adhere to strict social distancing guidelines established by the CDC. Sellers should vacate the property prior to any photography activities.

Note that creating virtual tours is an effective way to allow buyers to view the property without the need for an in-person showing.

Can stagers stage homes and remove furniture from a listing during the Stay Home, Stay Healthy Order? (Revised April 1, 2020)

Yes. Information concerning real estate services indicates that staging a home and removing staging items is now permitted. Like all other in-person activities, staging activities must be by appointment, a total of no more than two people may be at property at any one time, and those two people must adhere to strict social distancing guidelines established by the CDC. Sellers should vacate the property prior to any staging activities.

REALTORS® urge professional photographers and stagers to strictly comply with the requirements of Governor Inslee’s Real Estate memo to provide services remotely whenever possible, have only two persons on-site for a necessary purpose, and maintain social distancing at all times.

 

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Property Management Included in Inslee’s Memorandum

Washington REALTORS® has received confirmation from the Governor’s Office that property management services for single and multi-family residential buildings (including apartment buildings) are within the scope of Governor Inslee’s March 28 residential Real Estate services memo. This means that residential single and multi-family property management, including working with tenants, can occur subject to the requirements of the memo. Residential property managers must strictly comply with the requirements of the memo, which means that (1) in-person meetings with tenants are prohibited except when necessary to view a property or sign necessary documents; (2) any in-person viewing must be by appointment and limited to no more than two people on site; and (3) social distancing requirements apply to those two on-site persons. Property managers must perform any service remotely whenever possible.

REALTORS® in property management should also be aware of Governor Inslee’s March 25 Construction Guidance memo. That memo provides that commercial and residential construction is not authorized under the Stay Home, Stay Healthy order, except for certain essential activities, or “[t]o prevent spoliation and avoid damage or unsafe conditions, and address emergency repairs at both non-essential businesses and residential structures.” Thus, certain property management functions relating to safety and emergency repairs at residential properties may proceed based on the March 25 Construction guidance, while other property management services can occur based on the March 28 Real Estate guidance.

REALTORS® urge property managers to strictly comply with the requirements of Governor Inslee’s Real Estate memo to provide services remotely whenever possible, have only two persons on-site for a necessary purpose, and maintain social distancing at all times.

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