It was truly a sad day when the SBA PPP loan program officially ran out of money last Thursday, April 16th. 349B$ approved by 4,975 lenders for 1,661,367 loans.
More SBA funding for both the PPP and EIDL is around the corner. The Senate has approved nearly 370B$ for Phase 3.5 of COVID-19 SBA funding thereby sending it off to the House. For PPP: A total of 310B$ with 60B$ split like this:
30B$ for lenders with less than 10B$ in assets. This includes community banks, credit unions, and community development financial institutions, which typically provide loans to low-income communities and to people who lack access to financing. AND 30B$ for loans by FDIC-insured banks and credit unions that have assets between 10B$ and 50B$.
FOR EIDL: A total of 60B$ with 10B$ reserved for the up to $10,000 (per loan application) disaster relief grant.
The Senate bill also provides 75B$ for expense and lost revenue reimbursements to hospitals and healthcare providers and 25B$ for coronavirus testing.
If you have already applied – We recommend that you contact your bank now to ensure that the application and all the paperwork is in place and ready to be processed as soon as funds are available.
If you have not already applied – We recommend having the application and all accompanying documents complete and ready for when funding reopens. Contact your bank now to ensure you have all the right documents ready to go. Keep in mind that there are other applications in the queue – already accepted but not yet funded. First Come First Serve.
We also recommend if you haven’t applied already – apply for the EIDL first as the application process is quicker and there may still be the $1,000 per employee (up to ten) emergency advance. If you apply for an EIDL be sure to write down the Application Number. During the last funding round, the SBA did not have an online check application status.
This last PPP go round emphasized applying with a bank you had an existing relationship with and which hopefully was a preferred or existing SBA lender. Keep in mind these bigger banks might have more stops along the way to approval – local branch, district branch etc. – this slows down the process too. Another option – Community Banks. Community Banks processed loans faster than the bigger banks and perhaps even with less shuffling. You might have some quid pro quo but it is a practical option. Plus, the community banks have that dedicated 30B$.
We are here to guide you through this process and anything else to help you get through COVID-19. Email [email protected]. Please put COVID-19 in the subject line. Or call us at 727-327-1999.
In addition to the monthly newsletter and weekly blog we will be sending COVID-19 updates through “Email Updates”.
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Stay safe. Stay strong.
COVID-19 Disclaimer. Laws and regulations have quickly changed and will continue to change in order to mitigate the economic damage caused by the Coronavirus Crisis. New laws and regulations are being passed quicker than the legislative process has taken in the past. Guidance, clarifications, and interpretations are constantly evolving. Deadlines and due dates are being extended and re-extended. New relief and programs are constantly rising up. This is occurring on all levels: Federal, State, and Local. Please keep all this in mind. We are committed to giving you the best answer possible based on what we know at the time your question is asked.
