April 20, 2020
It is very likely that Congress will infuse more funding into the Payment Protection Program (PPP) this week. If you haven’t applied, you should immediately.
What you need to know:
• PPP- there are TWO steps to your application
• the institution that you applied with needs to approve your app, then they send it to the SBA (Small Business Administration)
• the SBA runs your application through a filter to see if you have applied (or received) any other conflicting loans
• once cleared, the SBA sends it back to your lender with a green light to fund
• funding “typically” takes 10 -14 days after received by the lender.
• CHECK WITH YOUR LENDER TO SEE WHAT STEP YOUR APP IS IN, STEP 1 OR STEP 2.
• Remember, once received, all PPP funding MUST be used for 75% of payroll, in order to be forgiven, the other 25% can be used for rent, utilities, etc…..
• Once your loan is funded, the payback timeline begins, there is no delaying this.
• Anyone who has NOT yet applied to PPP should apply and get in on the 2nd round (when approved)… this is crucial. Apply now… don’t wait to that one is full too.
• The EIDL loan fund (not forgive-able) “might” be replenished by Congress, BUT it will take much longer to do so. PPP is the priority now.
• It is advised that your business seek multiple layers of loans. Each loan can be used in a different manner and for different types of expenses.
• There will be a “Main Street” loan program coming out later this month or early May, BUT it will NOT be a forgivable type of product. Stay tuned for more information in the next week.
