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Writer's picturePenFed Realty Texas

An Update on the CARES Act Federal Stimulus Package



Dear Network Professionals,

As we all continue to work through the ever-changing dynamics being forced upon us by the COVID-19 pandemic, I’m encouraged by so many of you and the ongoing efforts to maintain our connectedness to each other and our communities. I’ve been invited to participate in dozens of virtual team and company meetings happening around the network and I love seeing the energy and spirit on display!

Building upon my message from last week, I wanted to share a few additional perspectives and encouragement which is helping shape the way I’m managing my day. First, I wake up at the same time every day, no excuses, no exceptions. As Gino Blefari, our Chairman, shared with our network leadership on calls last week, routines are critical to our health and well-being and can actually strengthen our immune systems.

Next, as part of my Daily Top 7 which I talked about last week, I actually schedule calls to family members and loved ones throughout the first part of my morning. Here’s my perspective; I want to get up each morning, focus on my own health and wellness with some meditation and reflection, review my schedule for the day ahead, check on the health and well-being of my family and loved-ones, and then, I’m completely and totally in the service of others. And I think that’s critical right now, we need to be of the mind to literally pour into those around us, to be completely in the mindset of helping others.

And speaking of service, I applaud the leadership by the incredible team at the National Association of Realtors, our local, state, and federal leaders, and all of the people and organizations that helped to create and pass the Coronavirus Aid, Relief, and Economic Security Act, or the C.A.R.E.S. Act. This historic piece of legislation has created many different relief elements that will benefit each of you, your businesses, your personal financial situations, and the financial situations of your trusted real estate contacts and clients.

I implore every one of you to please, review the attached summary document provided by the National Association of Realtors as a means of educating yourselves on the many parts of this plan. A few highlights from the C.A.R.E.S. Act which are documented in the attachment are:

  • Borrowers of government-backed mortgages, those from Fannie Mae, Freddie Mac, HUD, the VA, and the USDA, are able to request up to 360-day payment forbearance without fees, interest, or penalties;

  • There are a variety of much-needed assistance mechanisms for renters which are critical to understand for property managers and owners of rental properties;

  • The package provides for suspension of all payment due, without interest, on federal student loans for 6 months;

  • And 2 very critical programs through the Small Business Administration that may impact you, and potentially many of your real estate contacts. Each of these programs are for businesses with fewer than 500 employees, including sole proprietors and independent contractors.

    • The first is the Economic Injury Disaster Loan Grant which provides up to $2M to businesses that demonstrate hardship, including up to $10,000 to eligible businesses within 3 days of the business applying for this grant. The money can be used for employee sick leave, payroll, rent or mortgage payments, and debt payments.

    • The second is the Payroll Protection Program which provides up to $10M for eligible businesses and it increases the SBA “Express Loan” limit from $350,000 to $1M.


  • There are a variety of tax elements within the package that I encourage you to read and fully understand.

  • Also, there is now the potential for self-employed individuals to receive unemployment benefits. The “Pandemic Unemployment Assistance” is going to be administered by your state and the C.A.R.E.S. Act adds an additional $600 per week to any assistance available under your individuals states existing compensation law for up to four months.

Armed with the knowledge and understanding of the various elements of this legislation, positions you to serve and guide your contacts and clients. Remember, people don’t care how much you know, until they know how much you care. Your ability to give certainty and actionable guidance during this time is the essence of what it means to be a trusted real estate advisor.

Finally, PLEASE LISTEN CAREFULLY, cybercriminals will continue to exploit this crisis and people’s vulnerabilities during this time of need. Please be vigilant to protect yourself and your families from cybercrime scams and hustles. This is another element of service and guidance that you can provide as you’re talking with your network.

Until next time, stay safe, stay healthy, and stay positive!!

Chris     

This information is provided only as a general summary of new legislation and programs and should not be construed as legal or tax advice. You should consult with your own legal and tax advisors to learn more about how these measures may apply to your business and to you personally. 

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