Get back into the PPP Loan Arena!
Okay, so it’s game back on with regards the SBA Paycheck Protection Program.
The White House and Congress have reached a new deal for additional support to small businesses across America. The latest deal, expected to be passed by the Senate today and Congress on Thursday totals more than $480 billion.
This deal consists of $320 billion for the PPP program which ran out of funds withing 13 days of launching. This round of funding is on top of the original $349 Billion allocation.
If your small business missed out phase one of this program, here is what you need to know to get in line for this round:
First, realize that the first round of funding was chaotic, confusing, and broken. Due to the haste in which the program was put together, there still many unanswered questions among bankers, small business owners, and the SBA itself at the time it was launched—and there still are, so we’ll all just have to do the best we can with the information we have.
So here is what you should do if you have not been approved for a PPP Loan:
1) If you have not applied for the PPP already, call your regular banker immediately and determine if they are accepting applications. Inquire as to their success with the first round of funding and get a feel their competence for processing your application.
2) If you already applied with your bank and have not received confirmation of approval, contact them immediately and determine their process for submitting applications to the SBA for approval.
If your banker can not give you a straight answer, make sure they understand that you still want the loan and to do what they can to accelerate the process.
Then, immediately after you hang up, contact another bank, a smaller, local bank, S&L or Credit Union, and ask if they are taking applications for the PPP loan program. The smaller institutions seemed to be more prepared for this program than the big ones. It will help if you already know a banker who will take your call—Understand that all bankers are overwhelmed with calls right now, so call someone you know, or ask other business owners you know who have received PPP loans if they would introduce you to their banker.
Once you get to a new banker, explain your frustrations with your current bank and your desire to find a new one that can meet your needs, then submit an application at the second lender.
You can get a list of recommended documentation you’ll need for your bank in connection with your PPP application at www.market-view.com/resources.
The SBA PPP Application form itself may also be found at www.market-view.com/resources.
These unprecedented times call for unprecedented actions by small business owners. During the current economic crisis, if you have questions about surviving the Coronavirus as a small business owner, please contact a Market-View professional for a fee-free consultation.
Don’t forget that Market-View’s mission is to help small business owners preserve value, increase value, and prepare their businesses for a successful future sale or other exit transaction.
We’d love the opportunity to understand your unique situation and empower you with the information and market-based insights you need to make the very best decisions possible about the future or your business.
That’s Market-View’s small business tip for today. Good luck with your PPL application and may God bless you and your small business.