The Daily Dirt: Brokers can apply for federal loan program this week

An analysis of New York's top real estate news

TRD New York /
Apr.April 06, 2020 07:00 PM

Brokers can start applying for forgivable loans this Friday. Companies got a head start.

The Small Business Administration’s $350 billion Paycheck Protection Program will provide forgivable loans to businesses and independent contractors on a first-come-first-served basis to help cover costs for things like employees salaries and rent. Companies were able to start applying for loans on April 3. But brokers and other independent contractors must wait until April 10, Rich Bockmann reports.

“We believe this was done to stagger the applications lenders will receive at any given time; while also giving the SBA and lenders more time to get their ducks in a row when it comes to independent contractors and all that as everyone adapts to a new program and unique circumstances,” said National Association of Realtors spokesperson Wesley Shaw.

The loans are capped at $10 million and salaries limited to $100,000 per employee. Under the program, the government will forgive loans for borrowers who keep their payroll expenses at 75 percent of their normal levels.

Some are concerned that the program will not provide sufficient funds for companies in need. And brokers who didn’t have a business checking account before the crisis may have a difficult time securing the loans. Many banks participating in the program are only accepting applications from existing customers.

Rental insurance startup Jetty has laid off 40 percent of its workforce.

The New York-based firm cut more than 30 jobs across various departments, E.B. Solomont reports.

“Like every company in the country, we have felt the economic impact of Covid-19,” the statement said. “The primary reason for today’s cuts, however, is to control costs so we have ample funding to continue to expand our partner base and drive product innovation.”

Jetty, which was founded in 2017 and sells insurance and security-deposit alternatives, has raised $40.5 million over three rounds. Keith Rabois’ Khosla Ventures led the company’s $25 million Series B in 2019.

The company is far from alone in paring down its overhead in light of the coronavirus pandemic. More than 7,300 workers in New York were laid off for that reason last week during a two-day period.

What we’re thinking about: How long should evictions be suspended? Do you plan to apply to the SBA paycheck program? Send a note to [email protected].

CLOSING TIME

Residential: The priciest residential closing recorded Monday was for a condo unit at 56 Leonard Street in Tribeca, at $21.6 million.

Commercial: The most expensive commercial closing of the day was for an apartment and office building at 580 Grand Street in Williamsburg, at $2.6 million.

BREAKING GROUND

The largest new building filing of the day was for a 344,463-square-foot residential building at 33 Commercial Street in Greenpoint. Park Tower Group filed the permit application.

NEW TO THE MARKET

The priciest fresh residential listing was for a condo unit at 543 West 122nd Street in Morningside Heights, at $3.5 million. Halstead Development Marketing is handling the listing. — Research by Mary Diduch

A thing we’ve learned…

New York has partnered with Headspace, a mindfulness/meditation app, to provide free exercises aimed at reducing stress and anxiety. Could come in handy. Check it out here.

Elsewhere in New York

— Mayor Bill de Blasio killed a pilot program that closed a handful of streets in Midtown, Jackson Heights, Bushwick and West Bronx, Gothamist reports. The mayor said the number of pedestrian participants didn’t justify the amount of NYPD personnel needed to enforce social distancing in the spaces.

— ICYMI: A tiger at the Bronx Zoo has contracted Covid-19, the New York Post reports. Nadia, a 4-year-old Malayan tiger, is the first zoo animal known to test positive for the virus.

— The city may soon temporarily bury coronavirus victims at publicly owned sites, Politico New York reports. “If we need to do temporary burials to be able to tide us over to pass the crisis, and then work with each family on their appropriate arrangements, we have the ability to do that,” de Blasio said Monday. Hart Island is among the sites under consideration.


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