We have been talking with many of our clients regarding the Paycheck Protection Program (PPP) authorized by the CARES Act these past couple of weeks. There have been mixed results.
Some of our clients applied for a PPP loan and have already received funding. However, many ran into problems with the application process. Some were able to apply but have not heard back to find out if their loan was approved.
Perhaps you are in the same situation. If so, what can you do now? Here are some common questions about the PPP and some helpful suggestions.
What can I do if I applied for a PPP loan but have not heard back?
The good news is that the SBA has begun accepting applications for the second round of funding as of April 27, 2020.
If you already applied for a PPP loan, check with your lender to find out the status of your application. In some instances, you may need to reapply.
What can I do if I have not applied for a PPP loan yet?
If you haven’t yet applied for a PPP loan but are hoping to secure a loan, you may still be able to submit an application with many lenders.
The SBA provides a listing of eligible lenders in your area. You can also reach out to the community banks in your city, or look into online lenders that are taking applications such as Fundera, Kabbage, PayPal, and many others.
What else can I do right now?
Review your spending and eliminate any unnecessary expenses.
Create a simple cash flow forecast to see how long your funds on hand will last.
Look into other resources that are available in addition to the PPP. Some examples are that you can defer some federal payroll taxes; you may be eligible for the Employee Retention Credit, and you may be able to borrow up to $25,000 with an SBA Express Disaster Bridge Loan.
We have been hard at work with our clients to assist in any way we can. We know that these are stressful times. The resources available for small businesses are continually evolving so keep current as these develop so you can find solutions to assist you.