How real estate agents use Fundbox to obtain PPP loans

This case study shows how a real estate company in Texas was affected by the coronavirus/COVID-19 pandemic and required shelter-in-place, and how to obtain a Payroll Protection Program (PPP) loan through Fundbox to help its small business. As of December 27, 2020, Congress has approved additional funding for PPP. SBA can help you find a lender.

company:

Donald Leonard is employed by multiple real estate companies, including Texas Star Realty Professionals, which he and his wife Carol co-own, and Champions School of Real Estate, where he is an independent contractor. With the rapid spread of the coronavirus, as of late March 2020, the Texas state government mandated asylum-in-place. This means he cannot work.

challenge:

With no clear timetable for when the economy will reopen, he began to consider his options. Through his Association of Realtors, he heard about the CARES Act and the new Payroll Protection Program (PPP), which aims to support small businesses like him that have employees, independent contractors, and sole proprietors. While waiting for the state government to lift the quarantine regulations, he was excited about the possibility of receiving relief funds to help pay the bills. However, shortly after the government issued guidelines for applying for sole proprietorship on April 10, the first round of funds ran out.

solution:

Around the time the second round of financing was announced, Donald received an email from Fundbox that provided information to help him apply for PPP funds. He has an open credit line at Fundbox, so he is familiar with this service. He clicked to apply and filled in some basic details. Fundbox then contacted him with his partner Cross River Bank and submitted the application to SBA. “The whole process is very simple,” he said. “To be honest, I think it will be worse.”

Within a few days, he received an echo from Cross River and obtained approval. He signed the loan document, and the money arrived in a day or two.

result:

“I plan to spend at least 75% of my money mainly on wages to pay for my own wages. The rest I will pay for utilities and my shared office rent.” Worried about his eligibility for forgiveness, he hired ADP for him. Manage wages. “I opened an ADP account, so I can clearly track the exact amount I pay to myself in each payment cycle.”

Disclaimer: Eligibility for PPP loans may vary depending on your specific business and the lender you apply for. Fundbox does not provide financial, legal or accounting advice, and this content does not intend to provide (and should not rely on) financial, legal or accounting advice. You should consult your own PPP lender or your own financial, legal or accounting adviser before making any transaction.