The PPP Thread

[I-doc]

My dad has a small solo practice that will be trying to apply for a PPP loan. I have been trying to assist him with it while my clinic schedule in residency has been light in the last week or so. They have gotten all of the relevant documents prepared to try and be ready to go. A couple of days ago, he talked with a contact at a more local bank and was put on the "wait list". Applications were supposed to open today but the bank sent an email today saying "until final guidelines are received about the program" (presumably from the SBA) they are not accepting applications. They also have a business account at Bank of America which appears to have opened applications. Unfortunately, BofA won't accept applications unless they also had a business credit card through them. From what I have read online, it seems like there is a huge rush for these loans/grants and it will essentially be a first come, first serve kind of deal. I was wondering if anyone has been able to submit an application for a PPP loan through another bank successfully yet. I am not sure if it would be better just to wait until the local bank gets all they need and starts accepting applications or to try and find another bank that does not require a pre-existing relationship to apply for the loan. Any thoughts?

[jhwkr542]

Unfortunately, I worry that to get this money for many people, the government is going to have to provide more funding. I'm guessing the funds may be gone by Monday. You really need to have an "in" with a bank with whom you do business. So he'll have to get in line with everyone else if his bank isn't accepting applications. I'm just not sure how many people will actually get a loan with the huge rush and limited funding. Yes, our bank we have used a lot got us in and accepted our application. But we're still skeptical we'll get any funding.

[EntrepreneurMD]

I don't think anyone is actively processing applications yet.

However, I contacted senior business lending management at the local lender accepting PPP applications, completed the federal 2 page application and emailed it to them already. They also have a lot of my information already due to a current loan I have with them, to ultimately help expedite required documentation.

Best to be proactive and get in early as funds are ultimately finite.

[jacoavlu]

I don't think anyone is actively processing applications yet.

However, I contacted senior business lending management at the local lender accepting PPP applications, completed the federal 2 page application and emailed it to them already. They also have a lot of my information already due to a current loan I have with them, to ultimately help expedite required documentation.

Best to be proactive and get in early as funds are ultimately finite.

make sure the application you completed was the newer form. The official one that could be found as late as Wed has been changed

[Rando]

Unfortunately, I worry that to get this money for many people, the government is going to have to provide more funding..

I think they're absolutely going to provide more funding, they've gone all in on this. There may be some delay though, and hopefully everybody can weather that.

My local bank said they are still trying to figure out the correct forms and are waiting for guidance from the SBA. An online bank I put some feelers out to sent out an e-mail saying they weren't going ahead with the program yet: "we expect the Small Business Administration will provide further guidance at any time and will notify you immediately once we know when the application process will open". I did hear that a couple of major banks are already processing the loans.

My guess is they will get things figured out next week then the banks will be overwhelmed for a while. Kind of reminds me of the ACA website rollout.

[EntrepreneurMD]

make sure the application you completed was the newer form. The official one that could be found as late as Wed has been changed

I submitted SBA form 2483 (04/20) Hope it's the correct one. It's based on an April 2, 2020 advisory. I'm sure the lender will notify me if otherwise.

This is the interim final rule summary if you're bored enough to read 31 pages:

https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf

[jacoavlu]

yes that is the revised application

[Molar Mechanic]

They might be taking apps, but nobody is processing anything.

The big news today is that you can apply and get approved, but not accept the funds.

Don't rush into this. If your payroll is reduced, don’t take the funds until you do. Get good advice. The amount of misinformation is staggering. Anybody giving definitive answers is full of crap!

Edit:. SBA killed the apply and defer option.

[Tim]

Chase had said they wouldn’t be ready. The online piece is up.
One forecast I saw was the funding would be exhausted in 30 days. My understanding is that many of the funding proposals were known to be insufficient. Obviously no one knows and attempts were made to address competing needs. Fill out the forms.
It was totally ridiculous that items unrelated and grand standing was allowed. Not helpful but I would expect additional funding if the demand is there. Your application is a clear statement of demand.. Round 2 is preferable than zero.

[jacoavlu]

Mnuchin posted 4 hrs ago they had processed $1.8B in apps

https://twitter.com/stevenmnuchin1/status/1246137529822326784?s=21

[Rando]

The initial PPP payroll calculator I used this morning included payments to independent contractors (1099's) but it looks like that has been removed. My guess is that was a clarification from today.

[formerly_cn]

I have had ZERO success so far. I've approached 5-6 banks and applied. Heck I applied today to 3 new ones but it's all submission. Used contacts as well. What the heck is mnuchin talking g about ? I'd say 50% community banks are still "waiting on guidance"


But this was expected. It's government after all. This will be a cluster and few will get lucky. I expect another stimulus in soon.

[Antares]

Naive question here: who should be seeking this loan? If there’s forgiveness, it sounds like anyone would want it, and it’s really an attempt to support the economy. As I understand it, one doesn’t need to demonstrate hardship or loss, so even someone who happens to be thriving under these circumstances would apply. Am I missing something?

[Antares]

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.”

[jacoavlu]

Naive question here: who should be seeking this loan? If there’s forgiveness, it sounds like anyone would want it, and it’s really an attempt to support the economy. As I understand it, one doesn’t need to demonstrate hardship or loss, so even someone who happens to be thriving under these circumstances would apply. Am I missing something?

Applicant must certify in good faith:

The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC.

Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.

The funds will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments, as specified under the
Paycheck Protection Program Rule; I understand that if the funds are knowingly used for unauthorized purposes, the federal government may hold me legally liable, such as for charges of fraud.