Update on PPP loans and EIDL assistance
We’ve had our heads down working hard the last two weeks to assist clients with the EIDL grant and the PPP loan application. The SBA announced 9 days ago that it was out of money for both programs.
As you may have heard, due to the legislation the president signed on Friday, the SBA has announced that it will start accepting PPP applications again via financial institutions at 7:30AM Pacific time on Monday.
The application process for grant money (based on number of employees X $1000, up to $10,000) and an economic injury disaster loan, has NOT yet been re-opened as of this writing.
Several clients who filed that early this month have received their grant money over the last 2-3 days.
If you have not applied for the EIDL, I recommend you keep an eye on the SBA website, and apply if that re-opens.
In yesterday’s email to customers who applied prior to the SBA running out of money last week, JP Morgan Chase has advised its customers to apply elsewhere because it already knows it cannot accommodate all customers, despite the new legislation funding anew the PPP plan.
We are taking this as a signal that most if not all financial institutions will have this same problem.
I highly recommend that you make a 2nd application with another lender due to this lack of confidence that your original PPP submission with Wells Fargo, Chase, or elsewhere will result in funding.
It is best to do so with an entity that is offering applications, and that you already have a relationship, such as:
another bank, preferably a local bank
QuickBooks/other Online Payroll or Intuit Online Payroll, if you have a payroll subscription with them
Someone you have an equipment purchase or lease with if they are qualified to take the application, such as Stearns
We’ve learned that some banks will take your business application even if you only have a personal checking with them, others will not.
Two other possible lenders that we are using here on behalf of clients who have requested our services are Fund Box, and Blue Vine. For Fund Box you have to first make an inquiry, then apply after they send you an email. As of this writing, Blue Vine is taking applications directly.
If you need information from my office, we will continue to work the weekend to provide to you whatever information may be required that is in our files, or that we can prepare for you [for example, you may need a Schedule C for 2019]. We will respond as quickly as possible, depending on the request.
However, we won’t be able to start any new requests for applications until around Monday afternoon, inasmuch as we are already booked with existing requests.