PIF Lending CEO gives insight into ERC Tax Credit, CARES Act forbearance options
As the holiday season gets underway, real estate expert Andrew Leavitt, CEO of Pay It Forward (PIF) Lending, offers the gift of his industry knowledge to local employers, would-be homebuyers, and homeowners affected by the expiration of the CARES Act forbearance.
Leavitt reminds employers that they can get paid back by the government for retaining their employees throughout the pandemic through the employee retention credit (ERC), a tax credit offered for up to $7,000 per quarter for every employee who makes at least $40,000 a year.
“The only caveat is, you can’t take any funds back if you received Paycheck Protection Program (PPP) or the SBA loans during that time,” he said.
For quarters where the employer was receiving PPP/SBA loans, they cannot claim the employee for ERC, but they can claim for the quarters they were not receiving PPP/SBA, for a maximum of $26,000 per employee.
“Look at any small business, struggling, you have 10 employees,” he said. “Ten times $26,000 is $260,000 … It makes me excited because it will stop layoffs, at least for the holidays.”
Leavitt said employers under the management of a professional employer organization (PEO) company should contact them because they likely will already have something in place. Otherwise, contact your CPA.
There’s also help this holiday season for homeowners searching for assistance to retain their homes as the CARES Act forbearance plan expires. Leavitt said they should know there are several options available, including loan modification.
“As we are getting to the end of 18 months, just know that you don’t have to get foreclosed on,” he said. “A loan modification will restructure your loan and lower your payment to what you can afford now if your income has decreased, and make sure that you don’t lose your home at all for this holiday season.”
Finally, for would-be homebuyers, Leavitt also has advice, including insight into the process through which mortgage brokers are compensated as compared to mortgage bankers —and why going through the former is often a better option.
“The mortgage broker has access to multiple lenders, so if you don’t qualify in the traditional squared box, great — we probably have an option for you when the mortgage banker says, ‘loan declined,’” Leavitt said.
To learn more, watch Leavitt’s YouTube video:
PIF Lending is at 4155 S. Buffalo Drive, No. 101, in Las Vegas. For more information about PIF Lending, visit payitforwardlending.com or call 702-800-4664.
Source : Ruth Furman / ImageWords Communications
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