Can real estate agents get PPP loans? (important changes for 2021!)

In this 4-minute read:

  • Can real estate agents apply for PPP loans?
  • Are there any other PPP loan eligibility requirements?
  • Important updates to the PPP loan under the Biden administration
  • Additional PPP loan resources for contractors

There’s been a little confusion about who can actually apply for PPP loans. With all that’s going on in the world, every business could use a little financial reprieve, and that’s what the PPP loan is intended to do. 

The Paycheck Protection Program was put in place to help keep the economy going by helping small business owners and individuals through the financial hardships of the coronavirus pandemic. Business owners, including independent contractors, sole proprietors, and self-employed individuals, can apply for the forgivable PPP loans provided through this program. 

But what does that mean for real estate agents?

Gig workers, freelancers, sole proprietors, independent contractors, self-employed individuals and more are eligible for PPP loans. Check your eligibility with Womply in as little as 5 minutes, and you could receive up to $50,000 in forgivable PPP loans!

Can real estate agents apply for PPP loans?

Depending on your employment status you may be able to apply to receive a PPP loan as a realtor or real estate agent. Most real estate agents are classified as independent contractors and receive a 1099-Misc for the taxes, and often file IRS Form 1040 Schedule C. If you fall into that category, you are absolutely eligible for this program. 

In fact, the Biden administration has announced important PPP changes for Schedule C filers. On February 22, 2021, the Biden-Harris administration announced a rule change that allows PPP borrowers who file using IRS Form 1040 Schedule C to use GROSS profits, rather than NET profits, to calculate their maximum PPP loan amount. Read more here, and see the new rules, and the new PPP application form for Schedule C applicants.

There are few instances where real estate agents are classified by their broker as an employee, rather than an independent contractor, in which case you wouldn’t qualify for the PPP loan, but your employer absolutely should apply. You must be a business owner or other eligible business type (partnership, non-profit, etc.), independent contractor, sole proprietor, consultant, freelancer, or otherwise self-employed. 

What are the relevant PPP loan eligibility requirements for independent real estate agents?

Beyond just being a business owner or independent contractor, there are some additional requirements to be aware of if you want to apply for a PPP loan. 

Currently, you can apply for a first or second draw PPP loan. A first draw loan is just that–you are applying for the PPP loan for the first time and haven’t previously received these funds. A second draw loan is when you are applying for the PPP loan for a second time (this became available in January 2021. NOTE: the current deadline for all PPP loans is May 31, 2021, so start your free PPP application now). 

Basic eligibility requirements for first draw PPP loans (this is not an exhaustive list):

  • You’re an independent contractor, sole proprietor, or self-employed (additional requirements apply if you have employees)
  • You must have been in business as of February 15, 2020

Check our first draw PPP loan eligibility FAQ for special circumstances that may apply. 

Additional eligibility requirements for second draw PPP loans:

  • You previously received a PPP loan
  • You must have used your previous PPP loan funds on authorized uses by the time your second draw loan is disbursed
  • You must be able to demonstrate a revenue reduction of at least 25% in any quarter of 2020 when compared to 2019

Important updates to the PPP loan for real estate agents who are self-employed/independent contractors

As a real estate agent, these recent updates to the PPP loan may be a help for you. 

  • Previously, applicants with student debt delinquency could not apply for the PPP loan. This hold has now been removed
  • Non-citizen businesses that are lawful residents and file using an ITIN can now apply for PPP loans
  • Applicants who file using IRS Form 1040 Schedule C will be able to use their GROSS profits rather than net profits to determine their max loan amount. Read more here.

Additional PPP loan resources for independent contractors

With all of the questions lingering for independent contractors (including you as a real estate agent if you fall into that category), we wanted to help provide clarity and resources to help you understand this program better. 

Check out these resources for more information on PPP loans:

Simplify the application process with PPP Fast Lane!

Contractors, gig workers, sole proprietors, and eligible self-employed individuals can qualify for up to $50,000 in forgivable PPP loans for 2021! We built Fast Lane for you.

  • Simple, five minute data collection process
  • Guides you through every step along the way
  • Automated first and second draw loan applications

 Put your PPP application in the Fast Lane

Blog

The 90-day PPP extension is ACTUALLY a 60-day extension: APPLY NOW!

In this 2-minute read: The Paycheck Protection Program Extension Act of 2021 extends the PPP to the end of June, […]

Read More

PPP loans for developers, coders, IT professionals (apply before May 31, 2021!)

In this 7-minute read: Can developers, programmers, coders and other IT professionals apply for the PPP loan? Maximum PPP loan […]

Read More

PPP guide for food truck and snack cart owners (apply by May 31, 2021!)

In this 7-minute read: Are food truck and snack cart owners eligible for PPP loans? How much can food truck […]

Read More

If I work on a cruise ship, can I get a PPP loan? (plus 2021 rules updates)

In this 7-minute read: What types of cruise ship workers are eligible for the PPP loan? If I get the […]

Read More

PPP guide for personal trainers, fitness instructors, and health counselors (plus 2021 rules updates!)

In this 8-minute read: Who qualifies for the PPP loan? What can personal trainers, fitness instructors, dietitians, weight loss counselors, […]

Read More

Guide to PPP loans for farmers and ranchers (new 2021 rules!)

In this 8-minute read: Can farmers, ranchers, and other agricultural producers get the PPP loan? Calculating your maximum PPP loan […]

Read More

Start Your PPP Application.

What describes you or your business best?

My business has multiple employees.

My business does not have multiple employees and/or I work for myself (e.g., Uber drivers, DoorDash couriers, independent contractors).