The Paycheck Protection Program (“PPP”) has drawn both praise and criticism and like anything substantial, opinions formed typically depend on which side of the coin you land.
If you were fortunate enough to receive SBA approval in the first tranche, I am most positive you are a fan of the program. If you were locked out and frustrated your bank did not step up and process your application faster, or in many cases delayed taking applications at all, well then you are most likely not happy with the program.
I personally participated in the program and I can tell you, the process was challenging. Although it was an exhaustive exercise, I anticipated this experience to be fraught with confusion, I mean the government is distributing billions of forgivable dollars over the matter of days, what else would I expect?
Running a company is hard work but running a company in the middle of COVID is unreasonable. The playbook for governments and the entire economy is being rewritten as we go.
With this in mind, my team and I took a moment to add to the conversation and distribute additional resources we found useful to navigate the next round of PPP. Rest assured; this round will go fast too so you must bring your A game.
The PPP authorized up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. All loan terms will be the same for everyone.
The loan amounts will be forgiven if:
- The loan proceeds are used to cover payroll costs, most mortgage interest, rent, and utility costs over the 8-week period after the loan is made; and
- Employee and compensation levels are maintained.
Where to apply?
We highly recommend applying through several sources to increase your chances including your primary bank. I have spoken to many highly regarded business professionals and all of them applied through at least two banks and some applied to as many as four. The platforms that have been the most responsive and effective this last time around include:
- Lendio – https://www.lendio.com/
- Boefly – https://sbacares-app.boefly.com/
- Kabbage – https://www.kabbage.com/
Although funds have been depleted for the initial PPP, “phase 3.5” which will include an additional $310 billion is likely to be approved soon.
What documentation will I need when I apply?
- Average monthly payroll costs (compensation excluded in excess of $100k per employee)
- Employee count for that same period
- Retirement and Heathcare premium costs for 2019
- Details of full-time employees and their payroll costs
- 2019 Tax Forms including:
- 941 Quarterly Tax Filings, 1099’s, 944 Annual Tax Filings, W3 Summary
- Articles of Incorporation
- Drivers License (front and back) of owners or any shareholder over 20%
For additional information, please visit:
I know this is a difficult time for all of us – if we can be a resource for you regarding the PPP or if you need assistance maintaining certain head count please feel free to reach out to me. I am here to be of any assistance needed right now.
Stay safe and stay positive. We will all get through this storm.