Loan Availability Update as of March 31, 2020
Dear Clients and Friends,
First of all and most importantly we hope everyone is healthy and remains so.
We want to bring you up to date on the quick moving developments relating to the disaster loan programs that are available or will be shortly.
1. EIDL Application
If you have already filed an EIDL application, please go back onto the SBA portal at the following address and fill in the available forms there. Check on the box to qualify for the $10,000 grant immediately. We talked to the SBDC (Small Business Development Corp) this morning who actively deals with the SBA. They believe that everyone who has already made the application through the portal should go on and reapply. To apply, click here SBA – Disaster Loan Assistance
This does not mean that your initial application was wasted. They have concerns about the SBA’s ability to control all of the completed applications (not our words but theirs). The new application is extremely easy and although the website says it will take two and a half hours to complete it is actually more like 5 minutes. This application should make you both eligible for the grant as well as the original $2M in EIDL loans. The underwriter from SBDC believes that the original package of forms will still be required and the SBA will be reaching out to applicants and asking for this information as well as other financial data they will require.
We believe, therefore that it behooves everyone intending to make the application to get their financial house in order. If your business returns are on extension you should get them filed as well as bring you current records up to date. Whatever assistance we can provide we are here to do so.
2. Paycheck Protection Program (PPP) Loans
As we have been reporting these loans will be forthcoming through the banks and can be as high as $10M. they are based upon a calculation of payroll during a specific 8-week period. We have been in constant contact, not only with our bank, but also other major money center banks. We strongly suggest that you stay in contact with your bank. Both Chase and Bank of America expect to have the application forms on line and available by Friday. They have hired thousands of people to process the loans. The big question we have, which unfortunately we do not have a clear answer on at this time, is whether the forms will be the same as the original EIDL forms (see attachments). We have heard conflicting reports between “yes they will be” and “unsure.” We have not heard a definitive “no they will not.” The underwriter from the SBDC believes that given the program will be 100% guaranteed by the SBA he would expect some if not all of the forms will be utilized. (see attachments) Right now our advice is to complete them. Either way we will inform you immediately upon hearing a definitive answer. Remember that you can apply for both loans and if you receive proceeds under the EIDL it will be added to the PPP loan.
We are here to help as best we can. We are receiving a lot of requests for information or to discuss personal situations. Please be certain that we will respond to each and everyone.
Don’t hesitate to email or call us with any questions.
From the partners and staff of LHF
To access the SBA and EIDL forms, click here.