Beginning April 3, 2020, your small business can apply for a PPP loan funded as part of the coronavirus CARES Act. The great thing about these loans, is that they are low cost and some or all of it can be forgiven.
The rush to get this program up is understandably confusing and chaotic. If you wish to get your small business application into the program here are some suggestions.
Small Business Administration (SBA) is administering. Not the Treasury Department or other government agency. So the SBA and your bank are the best places to get first hand information on the program. While banks have information, they are swamped... so check with SBA first! Here is a link: PPP loan information
Example: For a number of days there were two versions of an application form; one from Treasury and one from the SBA. Though similar, banks will need to follow SBA guidelines!
SBA banks are on the front line. This is where YOU go to get an application filed for loan approval into the program. So work with a bank that is good at this process. Start with your business banker and go from there.
The risk to your bank could be high! The SBA loan guarantee is critical for your bank. If they mess up, the guarantee goes away, and they are on the line for the loss. So the risk is high for your bank and the reward is low. Do not forget this. Give them exactly what they need!
High demand, means low availability. The SBA loan processing system is not developed to handle the volume they are receiving. This includes banks handling SBA transactions. So be patient and for goodness sake DO NOT become the bottleneck. Turn their requests around as quickly and as accurately as possible.
And remember to ask for help. You want to do this right the first time, even with change rules and constantly evolving requirements.
Last updated: 04/13/2020
The Covid-19 Tax Resource Portal (herein after referred to as "Site") is made available as a service to our clients and others for informational purposes only. These materials and information should not be considered as, or a substitute for, accounting, tax or financial advice. While it is hoped the materials provided here are helpful as background material, it is not warranted either expressly or implied as accurate or complete. You should refrain in taking any action based upon the information provided here until you have received proper counsel.
In addition, you understand that any links to any other web site or services does not constitute endorsement of or warranty of any service, product or information provided on their site(s). These links are provided for convenience only.
While our intent is to make transmissions to and from this web site secure, it is understood that no warranty of security can be made and that unforeseen security breaches by "hackers" is a possibility, however slight.
Reproduction of part or all of the contents on this site in any form is prohibited other than for individual use only. All content on this site is copyright protected and/or trademarked as appropriate and may not be copied, duplicated or altered in any way.
In no event shall Jones & Company CPA, LLC, its affiliates or suppliers of any content on this site be liable for any indirect, incidental, special, punitive damages or consequential damages of any kind, or any damages whatsoever arising out of or related to your use of the Site, the content and other information obtained therein.
© 2020 - 2021. All Rights Reserved.