SBA – $10,000 Disaster Loan Emergency loan/grant and Paycheck Protection Program (PPP)

Check to see if the SBA has issued a disaster declaration in your area. COVID-19 has been declared a disaster.

The two programs are very different. 

1. The Economic Injury Disaster Loan Emergency Advance – up to $10,000 loan – does not have to be repaid. For all appraisers. Sign up now! Appraisers reporting that it is very easy to do. They got their money quickly. Per SBA “within three days of a completed application by a qualifying business.”

2. Paycheck Protection Program – have to get from a bank that is doing them. Can be difficult to get now. See below.

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.

————————————-

The Economic Injury Disaster Loan Emergency Advance – up to $10,000

This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.

Apply for this now! 

For more info https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

To sign up. Covid19relief.sba.gov

Should you sign up for this? I did not think I was having any economic issues. I don’t do any lender apraisaals and am not exempt from stay at home. Then, I realized I am paying $725 per month for an office that I can only use for file storage and picking up mail. I can only do desktop appraisals. I don’t know if the IRS will accept them. I may be able to postpone them, but I have no idea for how long. I am applying today, after I go to my office and find the information I need.

For most appraisers, the future is very uncertain for lender work. Some are getting much less work because they will not do interior inspections. No one knows how long lenders will straighten this out. Or, maybe you’re thinking about not doing interior inspections, but will lose appraisal work until lenders shift to desktop and drivebys.

——————–

Paycheck Protection Program (PPP)

An SBA loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis. It must be done through a bank that participates in the program. Lots of information is required. 

This program is designed to help keep people employed by giving loans to businesses. It is being swamped with business that have closed. Drive down the street in your city or a shopping center and see how many businesses are closed. Large companies are shutting down. In California, many construction projects have been halted.

This program started April 3. Lots of problems as lenders are not sure about how to set it up.

A few tips for applying:

1. Most Important. Contact the bank where you have a loan or an account.

2. Check local social media. I got posts from alignable with some banks to check out.

3. Call banks. May take quite a few phone calls. Check the local newspapers for who is offering the loans.

I emailed the manager at my local bank. I have known him for over 30 years. I have had all my business and personal accounts there for over 30 years. They replied that were totally swamped with inquiries, but were only considering their own customers. It is now a branch of another Bay Area bank, which is relatively small.

For some appraisal companies, this allows you to keep paying employees. For example, you are doing non-lender work. This is not exempt in most states. Your business will be much lower. I am not sure about residential appraisal companies doing lender work that are very busy now.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

======================================

Appraiser Survey Results

April 1 Wednesday Facebook Poll results:

Doing interiors    142 – 57%

Turn down interiors  80 – 32%

Transiting away.    28 – 11%

Total         250

—————————-

Bradford software customers – Started April 30, last Monday

I took this survey.

Q1 Have you been been accepting new appraisal assignments? (check all that apply) (1,087 responses)

Responses

– I do Desktops using the new COVID-19 Flexibility Desktop addendum 29.35% 319

– I do Drive-bys using the new COVID-19 Flexibility Exterior addendum 49.22% 535

– I do traditional 1004s with interior and exterior inspections 65.96% 717

– Not doing appraisals during the pandemic crisis 8.92% 97

Q2 Did you know lenders will accept a desktop or drive-by in lieu of a traditional 1004 with interior inspection?

Yes 83.90% 912

No 16.10% 175

Q4 Would you complete an appraisal that included interior photos

completed by a homeowner if you could verify the photos were taken

inside the home?

Yes 72.13% 784

No 27.87% 303

Many thanks to Jeff Bradford for this data!!

——————————-

ICAP COVID-19 Survey. Ongoing. Results below are from 4/6/20 with 1,310 respondents, the date I took the survey. When you finish the survey, you immediately get the full results.

This is much more extensive than the two surveys above, with 12 questions. It also includes commercial appraisers (13% of respondents) but the results were hard to figure out and are not included. Typical for surveys.

To take the survey, go to

https://www.surveymonkey.com/r/XZXCCNC

1. What types of appraisal assignments are you primarily performing?

Residential 90% 1,175

Commercial 13% 171

2. Are you still performing interior inspections?

Yes for 1-4 family assignments 59%

No (or very few) for 1-4 family assignments 30%

3. Are you concerned for your safety and the safety of your family when you are required to perform interior inspections.

– No 14%

– I am not performing interior inspections 10%

4. Are you asking the borrower any questions about their potential exposure to COVID-19 before scheduling an inspection?

Yes 79%

No 21%

5. Are you being pressured by any clients to conduct interior inspections?

Yes 31%

No 69%

6. What type of protective wear are you using during property inspections (check all that apply)

Disposable gloves 84%

Protective face masks 46%

Disposable booties 21%

Medical scrubs 0

None 21%

Other 17% (specific data not supplied in survey results)

7. Are high or low percentage of borrowers/owners/tenants refusing to allow access to their properties to perform an interior inspection?

High 16%

Low 84%

8. Are clients ordering drive-by and desktop appraisals based on the recent Fannie/Freddie alternative single-family guidelines?

Yes 36%

No 64%

9. Are lenders or AMCs asking you to accept lower fees when assigning the new GSE’s alternative formats, i.e. drive-by and desktop appraisals?

Yes 40%

No 48%

10. If he borrowers/owners/tenants will not allow interior access to the property what is the lender’s primary reaction and guidance?

Change order to an alternative appraisal format (drive-by or desktop) 21%

Place order on hold 37%

Cancel order 12%

Other 30% (specific data not supplied in survey results)

11. Do you know any appraiser who has been diagnosed with COVID-19?

Yes 8% (103)

No 92%

12. Do you think the state and federal government should intervene and stop requiring appraisers to perform interior residential inspections?

Yes 58%

No 42%

My comments: The results (#9 above) show that the majority of residential appraisers are still doing interior inspections. 40% of lenders are asking for reduced fees for drivebys and desktops. DO NOT GIVE A DISCOUNT FOR DRIVEBYS AND DESKTOPS. They are not like to old 2055 and comp check days. Lots of research required now, getting fotos from borrower, etc. etc.

Friday I will have an analysis of these results. Ran out of time but wanted you to have the data.

======================================

N-95 vs. surgical vs. cloth masks

Surgical mask – left

N-95 mask – right

Very different!!

First, masks of any type help prevent the user from infecting others by acting as a physical barrier that will block large droplets from coughs and sneezes. These droplets can travel up to 20 feet with a powerful sneeze, so six feet of social distancing is not always enough.

Remember, they are to protect others from you. For medical personnel working close to infected, very sick, patients, face shields are strongly recommended to keep anything from infecting them.

I have used all three types of masks. Here are the practical differences

N-95. 95% of COVID-19 aerosols don’t get through the mask. Fit close to face. Mine have a ventilator button on the front to make breathing easier. But, one size for all for most masks and don’t always cover properly. For example, beards are a problem. If you use them, be sure to google and get more info. This is one of the reasons that CDC etc. did not recommend them for the public. Of course, the main reason is a shortage. I used them last year when we had a lot of smoke from fires – looked like Beijing China on a bad smog day outside my window. I have a few left over from the bad smoke days. No shortage here, so I don’t feel guilty keeping them.

Surgical masks. Filters our 60-80% of larger particles. Very loose fitting and hard to keep in place. Can’t protect against COVID-19. However, it can help prevent you from spreading the virus to others. They’re typically in hospitals and other healthcare settings to:

– protect the wearer from sprays, splashes, and large-particle droplets

– prevent the spread of potentially infectious respiratory secretions from the wearer to others

Cloth Masks. CDC recommends wearing cloth face coverings in public settings where other social distancing measures are difficult to maintain (e.g., grocery stores and pharmacies). The biggest challenge of choosing a homemade mask material is to find a fabric that is dense enough to capture viral particles, but breathable enough that we can actually wear it. For example, quilters have been making masks from dense quilting materials.

For lots more info on cloth masks click here

======================================

MISCELLANEATA

McKissock Fannie Mae webinar available for viewing. Has comments by a Fannie employee. 

Per Fannie Mae “This recording reflects the temporary appraisal inspection guidelines during the coronavirus state of emergency as of the date of the recording of March 25, 2020. Please continue to check Fannie Mae’s website for the most recent updates: www.fanniemae.com/appraisers ” Yes March 25 was soooo long ago! FAQs updated.

Here is the direct URL to the recorded webinar: click here

——————————

LINK TO DOWNLOAD THE FREE April Monthly Appraisal Today newsletter

www.appraisaltoday.com/coronavirus

EZ to remember ;> Send the link to friends etc. Lots and lots of coronavirus info. Working on some good pandemic movies and documentaries to watch. Currently watching a fascinating documentary, The Black Death, on Amazon Prime.<

===========================================

Toilet Paper Fun and (a few) Facts

Take a break NOW. You need it!!

If We Run Out of Toilet Paper…

Excerpt: If you are like me, you may be experiencing a little Coronavirus exhaustion. I take this situation very seriously. We all do! However, it is easy to experience burn-out from negative news. I’m sure you’re feeling the same way. Sometimes, we just need a break from the moment to catch our breath and find a little humor.

That’s what I am doing in this post. This post is in no way making light of the Coronavirus situation. Please take this post as it is intended, as a little comic relief. I will save talking about real estate for another time.

A few tidbits:

– Great TP shortage in 1973

– From the past: sponge on a stick, ropes, stones or pieces of ceramic, Sears Roebuck Catalog, recommended leaves, etc.

To read more, click here

17 Cats Who Took A Stand Against Toilet Paper Hoarding Lock your rolls up! Very Very Funny!

You just gotta see these!!

To the leftt – one good example

This cat who knew it was the last roll and took advantage of it:

To read more and see some fun videos, click here

——————————————————————————

Reality Check if you really want to know why…

What Everyone’s Getting Wrong About the Toilet Paper Shortage

It isn’t really about hoarding. And there isn’t an easy fix.

Excerpt: In short, the toilet paper industry is split into two, largely separate markets: commercial and consumer. The pandemic has shifted the lion’s share of demand to the latter. People actually do need to buy significantly more toilet paper during the pandemic — not because they’re making more trips to the bathroom, but because they’re making more of them at home. With some 75% of the U.S. population under stay-at-home orders, Americans are no longer using the restrooms at their workplace, in schools, at restaurants, at hotels, or in airports.

Interesting info here: To read more, click here

My comment: I have been dreaming about garages full of toilet paper!! Guess I can’t say it is my friends hoarding it, who refuse to give me one roll!! I finally gave up and ordered some Kleenex tissues from amazon before my TP finally ran out. Plenty available. I do hear that sometimes dollar stores (and similar deep discount stores) have TP. I can get plenty of kitty litter for Widget. No hoarding ;>

======================================

NO MBA NEWS TODAY. COMES OUT ON WEDNESDAY. WILL BE IN THE FRIDAY NEWSLETTER.

NOTE: NEW POSTAL ADDRESS

======================================

Ann O’Rourke, MAI, SRA, MBA

Appraiser and Publisher Appraisal Today

1826 Clement Ave. Suite 203 Alameda, CA 94501

Phone 510-865-8041

Email  ann@appraisaltoday.com 

www.appraisaltoday.com

Leave a Reply