Zillow Premier Agent
April 30, 2020
4 Minute Read
Portions of this article were updated on Nov. 23, 2020.
Jump to information about:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020, and provides multiple options to help support agents and brokers facing financial hardship due to COVID-19. The law also contains special provisions to help those struggling to pay their mortgage or rent. Here’s where you and your clients can start finding help.
The CARES Act provides two options for credit relief to small businesses impacted by COVID-19. Notably, both loans include forgiveness provisions if the funds are used to maintain or re-hire employees. These programs are administered by the Small Business Administration (SBA) and funds are available on a first-come, first-serve basis.
Of note for agents, these loans are available to independent contractors. For more information on how independent contractors can access funding, download the U.S. Chamber of Commerce’s Independent Contractor Guide to CARES Act Relief.
The first round of funding for these loans went very quickly, so you may want to apply promptly. If you applied for a loan prior to funds being exhausted on April 16, you may want to check with your lender to see if your loan has already been submitted to SBA or if further action is required.
Businesses with 500 or fewer employees — including sole proprietors, independent contractors and cooperatives — can apply for a loan of up to $2 million through December 31, 2020. Note, in a change from the past, the SBA is no longer making EIDL advances.
For more information, help finding an SBA lender or to start a loan application, visit the Small Business Administration. Note that some lenders may require their own form.
Update, August 8, 2020: Current law dictated that the Paycheck Protection Program (PPP) close on August 8, 2020. As such, SBA is no longer accepting PPP applications from participating lenders.
Update, July 6, 2020: The Trump administration has signed into law an amendment to the Paycheck Protection Program (PPP) that gives businesses affected by COVID-19 more time to apply for federal funds. The law extends the deadline to apply for the federal government’s loan-based relief program, from June 30 to August 8, 2020.
Update, May 21, 2020: The Small Business Administration has released the loan forgiveness application and instructions for the Paycheck Protection Program (PPP). Visit the Small Business Administration to learn more about the PPP. You can download the loan forgiveness application form and instructions here.
For more information, download the U.S. Chamber of Commerce’s Coronavirus Emergency Loans Small Business Guide and Checklist.
Under the CARES Act, the majority of U.S. residents will receive one-time cash payments from the IRS. Payments will be based on 2018 or 2019 tax return information — whichever was most recently filed. You should receive your payment as a check in the mail, or by direct deposit if the Treasury has account information for you.
The IRS estimates it will begin distributing payments to eligible residents around April 20. Payment amounts are determined as follows:
For more information, visit the IRS Economic Impact Payments fact sheet.
The CARES Act provides enhanced unemployment assistance for:
These benefits also extend to individuals who are in quarantine or are caring for family members due to circumstances related to COVID-19. Individuals who can telework with pay or who are receiving other paid leave benefits do not qualify.
Under the CARES Act, all eligible individuals will receive the amount equal to what is authorized under their state’s unemployment compensation law. This insurance is available for a maximum of 39 weeks.
The CARES Act also provides an additional $600 per week, available only during the period of April 1 to July 31, 2020. The extra payment would be excluded when determining eligibility for Medicaid or the Children’s Health Insurance Program (CHIP).
To apply for unemployment assistance, contact your state unemployment insurance agency as soon as possible after becoming unemployed.
The CARES Act contains several tax provisions that may be beneficial to small businesses, but qualifications will vary by individual situation. Consult a tax professional to see if you or your business may be eligible for any tax relief from the law.
The CARES Act provides for mortgage forbearance to homeowners with federally backed mortgages as well as eviction moratoriums for tenants of certain properties. The Consumer Financial Protection Bureau has more details about what might be available for you or your clients.
Zillow has more resources about relief options for those who may be unable to pay their mortgage or rent. Find them here.
Zillow works for agents
We're here to support you and your clients on their journey home. Discover how we can help grow your business today.
Learn more