Loan Program Requirements Update
Sorry for the subject line but we couldn’t help ourselves. After a week of dealing with various bank requirements relating to the PPP loans, some of which seem nonsensical, such as changing SBA requirements, opaque reasons for approval, non-approval, regional approval disparities and just no feedback at all, we understand why there are so many angry and frustrated applicants. Many folks are asking us related questions which we simply cannot answer at this time. We wish we could. We will continue speaking with our network until we get you answers. Here are some of the best answers to questions we can give at this point in time: Q: Has all the money under the PPP been allocated? A: Apparently so. Most of the major banks have posted that they cannot provide further funds. Having said that, it appears that amounts have been specifically allocated to large banks thereby taking them out of the total pool and some are continuing to fund from their pool.
Q: I have had no response from the bank to which I applied. Am I precluded from applying to another bank?
A: No you are not. But at this stage it is doubtful you will have better luck anywhere else. You are allowed to make more than one application but only allowed to get one loan.
Q: So was my loan application a waste of time?
A: Not necessarily. We believe that there will be additional funding coming from Washington. The demand is too huge for them to not come to an agreement and provide additional funding. Your application should now be closer to the top of the pile. You could also try placing a second application elsewhere but most banks and other funders have stopped taking applications at this time.
Q: I did not apply yet. Is it worth it?
A: Assuming you meet the qualifications yes it is worth it. As we have previously stated we do believe that additional appropriations will be made in Washington to further fund the program and you have nothing to lose by applying
Q: What about the EIDL program? What is the status?
A: The SBA has stated that its program is oversubscribed at this time and it is not taking further applications as of today.
Q: Has anyone been funded under the EIDL?
A: We can attest that a number of clients have received the $10,000 grant. Before today we had not heard of anyone being funded through the EIDL loan program but we have just heard of a $500,000 loan being approved although not funded yet.
Q: I was depending on funding. Now what do I do?
A: Survive! You have to right size your business to your current reality. Over 22 million Americans have filed for unemployment in just 4 weeks. Businesses of every size are laying people off and cutting their payrolls. In many cases your employees maybe be better off or marginally the same not working under the Federally enhanced program. Many states and/or companies have placed moratoriums on the payment of insurance premiums. Discuss this with your insurance professional. Talk to your lender about getting a forbearance on your mortgage and/or loan. Same with your landlord. Ask for a forbearance of rent. If you have credit card debt talk to the card issuer about a delay of payment. If you continue to pay payroll consider deferring the payment of social security taxes which has been recently introduced. Take it upon yourself to comb through your income statement to see what items you can cut or defer during this time. Small items add up. For those of you who have been funded…congratulations you are lucky! Do not waste the opportunity you have been given to turn this into a forgivable grant.
We will be providing details on the requirements for this in future emails.
We are here to help in any way we can.
The partners and staff LHF