Must Read for Small Business Coronavirus Loans
Your small business can now 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.