How the $2 Trillion Stimulus Package Can Help Real Estate Agents and Brokers
Realtors are getting some good news in the new stimulus package.
On Friday, the president signed the massive $2 trillion bill into law. The law includes numerous benefits for real estate agents, brokers and other American workers in light of the coronavirus pandemic. The National Association of Realtors called the legislation, “seismic and definitive action to help Americans and the economy.”
The primary benefit for real estate agents and brokers are the much-talked-about direct payments. These payments, which are due to be sent in the coming weeks, amount to $1,200 for all Americans making less than $75,000 and taper off higher incomes. The process for getting a payment should be automatic provided you filed taxes in 2018 or 2019 and your direct deposit or home address is up-to-date. Follow the IRS coronavirus page for more on the direct payments.
Small Business Loans
The stimulus package also makes new loans available to support realtors and other small businesses. Under the program, businesses with fewer than 500 employees and self-employed workers can borrow up to $10 million to cover rent, payroll, mortgage, utility and other payments, a portion of which may be forgivable. To receive a loan you will need to apply through a bank, credit union or other lender. Not all are approved to issue the loans, so you should contact your lender and ask about the Small Business Administration 7(a) program. Follow the SBA loan resource page for more info on the program.
New Insurance Benefits
Lawmakers acknowledge the challenges social distancing places on realtors and other workers. The law provides expanded benefits for agents and brokers that need to pause their work for the time being. Self-employed workers and independent contractors who are not working are now able to apply for unemployment insurance. This includes those who are not able to start a job or contract due to the coronavirus. The expanded assistance also includes a $600/week boost and 13 weeks of additional coverage. You can apply for these benefits through your state unemployment office. Follow the Department of Labor coronavirus page for more on this program.
Payroll Tax Delay
Real estate professionals may also see some beneficial tax flexibility. Employers or those who are self-employed will have the option to delay payroll tax payments to the IRS. Under the stimulus law, half of the normal payroll tax bill will be due by the end of 2021 with the remaining half due the following year. See the IRS page for more on this tax flexibility.
Help For Homeowners
Finally, the law provides substantial relief for homeowners. It allows individuals with a federally backed mortgage to request a mortgage payment delay for up to 180 days with extension possible. See the Federal Housing Financing Agency coronavirus page for more.
Questions or feedback on how the stimulus package can benefit real estate professionals? Leave a comment below.