Fed money is going to small businesses that applied, but the Payroll Protection Program fund has spent 71% of its total – and many loan offers are less than first advertised.
WASHINGTON – On a recent webinar with Florida brokers from across the state, Alex Sanchez, Florida Bankers Association CEO, reported that $250 billion of the $349 billion initially allocated to the Paycheck Protection Program (PPP) from the CARES Act has already been committed.
“We strongly recommend that all Florida Realtors who qualify apply now because the fund may be depleted by the end of the week (April 17).” For more info and to apply, visit NAR’s website.
In response to program cuts and a need for more funding, NAR along with other real estate groups send a letter to Congressional leaders asking for relief.
“Two weeks after passage of the CARES Act – while many small businesses and independent contractors had already submitted applications – the SBA announced that EIDLs will be capped at $15,000 with a maximum advance amount of $1,000 per employee,” NAR wrote. “This sharp departure from CARES Act language is meant to expand access to the program, but it completely alters the nature of the loan and the advance grant, dramatically reducing effectiveness for businesses in need.”
NAR noted an especially high impact on independent contractors, the status of most Realtors, saying they “have no employees and whose EDIL grants (Economic Injury Disaster Loan Emergency Advance) are essentially rendered unforgivable. Tying EIDL advances to employee numbers bears no relation to the purpose of the loan; although these funds can be used for payroll costs, they are not explicitly tied to maintaining employee numbers or payroll levels – as is the PPP.
“Reducing the loan limit from $2 million to $15,000 is particularly devastating to businesses that have been shut down for a month and have no way of knowing when they will be able to reopen.”
NAR is advocating for additional program funding for both the PP and EIDL programs through future legislation. “In addition, Congress should clarify implementation to resolve issues with added limits and requirements that are not in accord with legislative intent,” the letter states.
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