The PPP Thread

[jacoavlu]

Maybe I was missing this:
“What do I need to certify? As part of your application, you need to certify in good faith that:
 Current economic uncertainty makes the loan necessary to support your ongoing operations.”

You can find link to the regs from Mnuchin twitter feed I posted above. You would be wise to peruse the document.

[Cubicle]

Same issue at Bank of America, no loan with them.

Chase requires a deposit account.

Wells Fargo & Capital One are not taking applications yet.

3 local banks are taking names & emails for now.

So I can't actually get a lender to process me. I'm going to web around tomorrow & Monday for more attempts.

[jacoavlu]

find a small bank with a name not nationally known, preferably with a few F150s or Silverados parked in the lot

[jacoavlu]

maybe consider Lendio - though it could just result in you getting a bunch of spam. I’ve no idea

https://www.lendio.com/covid-relief/sba-paycheck-protection-program-loans/

[jfoxcpacfp]

We hope to have a letter to clients out next week with specific guidelines and a summary of provisions applying to physician business owners. Until then, we are waiting on additional clarification and sorting through the various information already put out. I have a link to a helpful Q&A from the IRS on our in-office chat and will try to return here and post when I get in. One point it does clarify is that sole proprietors’ net profits are treated as payroll.

You definitely need to be impacted to qualify but it is somewhat on the honor system currently. My opinion is that, when the time comes to calculate the amount to pay back (zero for many), you will be required to prove you have been economically impacted. For example, we do not qualify and are not applying. I realize this is a huge blessing.

[Tim]

Maybe I was missing this:
“What do I need to certify? As part of your application, you need to certify in good faith that:
 Current economic uncertainty makes the loan necessary to support your ongoing operations.”

I would “hope” the need an applicant can demonstrate. Of particular importance is the comp limit of $100k/yr. The “spirit” of the law is to allow the business to survive and forgive the loan for specific expenses. The forgiveness is the questionable computation. It “should” require repayment of profits that would boost a physician’s earnings over the $100k rate. This is not a loan forgiveness to maintain $300-500k profits. Short term to allow the business owner to pay employees and $100k/year rather than close.
The “loan forgiveness” is to cover the losses and still provide the owner $100k comp. That is valuable for many small businesses.
What we as a country have is a natural intent for “free”. Tough to write regulations, but for some this provides funds for two months that the government will absorb and not destroy your business. Without the short term guarantee, many will close. I hope small businesses take advantage to stay open, rather than boost profits.
The “brilliant” part is that the exit plan of these loans is defined. Forgiveness or a 4% rate and a repayment period up to 10 years. Not bad for operating cash for 3 months that saves a business.
Good Faith by the employer and the government are key. There is risk for sure.

[jacoavlu]

4% for 10yr was changed to 1% for 2yr

[Antares]

Upon further review, I won’t be either eligible or applying. There’s too much psychological and psychiatric struggle all around for me to suffer economically as long as I don’t get sick.

[Tim]

Upon further review, I won’t be either eligible or applying. There’s too much psychological and psychiatric struggle all around for me to suffer economically as long as I don’t get sick.

Since you run a cash practice, is there a possibility of a delay in the ability of patients to pay?
Just a musing, not a challenge. Stay healthy regardless.

[jacoavlu]

Know a colleague who claims to have gotten word from bank of SBA approval of the loan yesterday after submission of app mid day Friday.

we submitted app to same bank end of day Friday.

[formerly_cn]

Know a colleague who claims to have gotten word from bank of SBA approval of the loan yesterday after submission of app mid day Friday.

we submitted app to same bank end of day Friday.

Uhh...approved on the weekend ? Interesting. And to my knowledge local banks are making decisions on PPP loans not SBA which is just guaranteeing the loan.

Awaiting the ************************ to burst Monday morning. Servers were sooo slow even taking apps today and it's Saturday. I just hope they are just to ALL small businesse (how about multi cloud server threading in this situation ?? Startups get on it).

Goodness it sucks to go from a business rampaging to zero in like 2 weeks. Not to mention public health crisis.

A virus. Who would have thunk.

[jacoavlu]

yesterday - Friday

[formerly_cn]

yesterday - Friday

Oh ok..sorry misread. Wicked fast. Also means local banks making decisions. Lets see what Monday brings.

[Tim]

Goodness it sucks to go from a business rampaging to zero in like 2 weeks. Not to mention public health crisis.
A virus. Who would have thunk.

Just imagine how unprepared Enron employees felt. 401k’s and taxable loaded with Enron stock and no job, no severance, no loans. Guilt by association as well. I hope this small business loan program works.

[Cubicle]

I spoke with a banker who can't write the loan for us, but did state the banks are the gatekeepers for the loans, not the SBA.