If you have submitted an application and haven’t heard from your bank, congratulations you are now in the Black Box Phase. I have collected and curated articles about the Payroll Protection Program to keep you updated. Read on to find out why you are not alone.
4/23/20 The bill to re-fund the PPP program passed Congress today, and is expected to be official at noon on Friday. Hopefully you have more than one application already submitted, because this round of funding will go very quickly.
4/15/20 Here are the long awaited guidelines for the non-employee businesses (still no updates about the LLCs, however)
4/14/20 Are you looking for a bank to submit your application? Here are some places to look
- PPP FAQ 4/13/20 Update with #22 to #25
- Nothing useful for the small businesses
- Nothing yet to clarify the Sole Proprietors, LLCs, and Independent Contractors
- PPP FAQ 4/10/20 Update with #19 to #21
- The 8-week forgiveness period begins with the disbursement of the loan
- The loan must be disbursed within 10 days of SBA approval
- Treasury.gov 4/7/20 FAQs
- Town Hall meeting moderator from Inc.com said they are trying to provide help “through this ridiculously difficult time”
- Listen to the 18 min mark
- No new information about sole proprietors and independent contractors at this time
- Submit your applications anyway and get in the queue
4/10/20 8:00 AM PDT North Bay Business Journal
- A banker (with a smallish bank) describes their frustrations
4/10/20 5:30 AM ET Wall St Journal
- “Very few business owners have successfully gotten the money”
- The SBA loan portal is inadequate: “some banks [are] inputting borrower information manually” into the SBA loan portal which takes 25 to 75 minutes per application. The system crashes, and there was along outage last Tuesday.
- As of Thursday, 550,000 loans worth $141 billion have been approved, but only a small portion has been disbursed to businesses
- The EIDL program has had 4 million businesses apply, totaling $383 billion, but only $17 billion was allocated by Congress
- Banks are reluctant to disburse funds because of the confusion over the format of the promissory note. This applies to “all but a handful of banks”
4/10/20 9:59 AM ET Forbes
- 70% of the 30 million small businesses in the US have applied to the PPP
- A little over 50% of the small businesses have applied for the EIDL but just 4% have been approved
4/10/20 7:52 am CBS News
- Interview with owners of a micro-brewery in Maine with production and tasting room who got funded with PPP funds
- Cautionary tale: Their loan was approved April 6th (the Monday after the rollout) but the bank was forced by the SBA to close all approved loans within 5 days. Unfortunately most of their staff works in the tasting room, which is still closed.
- The owners had hoped to pick the 8 weeks after the tasting room opened. So most of the funds will not be forgiven.
Then we were required to close immediately. If things stay the way they are, we anticipate we will be eligible for very little forgiveness — if any. And that’s pretty upsetting….Before this crisis, we had about 25 people working at Rising Tide. We have laid off all but four of our employees. They are on furlough and we hope to hire them back, but it wouldn’t make sense for us to bring them back at this point because our operations are so dramatically curtailed