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Paycheck Protection Program

Old 03-28-2020, 07:21 AM
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Default Paycheck Protection Program

Since there are more than a few small business owners here - this is the program that will affect us most. The SBA has 30 Days to come up with their official guidance and the list of approved banks. But it would be worth your while to start getting your paperwork together.

Program highlights
There is no cost to apply.
The funding is meant to help retain workers, maintain payroll, and cover rent/mortgage/utility expenses.
The loan covers expenses dating back to February 15, to June 30 2020
The loan can be forgiven and essentially turn into a non-taxable grant.

The funds can be used for:
Payroll and commission payments
Group health care benefits/insurance premiums;
Mortgage, rent, and lease payments
Utilities
Interest on any other debt obligations that were incurred before the covered period.

How can I get my loan forgiven?
In the 8 weeks following your loan signing date, all expenses related to the following can be forgiven:
Payroll—salary, wage, vacation, parental, family, medical, or sick leave, health benefits
Mortgage interest—as long as the mortgage was signed before February 15, 2020
Rent—as long as the lease agreement was in effect before February 15, 2020
Utilities—as long as service began before February 15, 2020

More details here:

https://bench.co/blog/operations/pay...ction-program/

https://eig.org/news/understanding-t...ection-program
Old 03-28-2020, 10:33 AM
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Thanks for posting

Wading through all of the information (and misinformation) is daunting

Old 03-28-2020, 11:00 AM
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i think I am going to be fine, my only drawback is people cancelling their orders that I have already paid for and they are cancelling because of "the risk" of getting the virus while out picking up their orders........guess I will vac pac and freeze any unsold goods and eat like a redneck for months
Old 03-28-2020, 11:04 AM
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We too think we should be fine depending on how long it last, long term effects, etc. but we will still take advantage of anything and everything offered especially the up to the 8 weeks which would be essentially "free".

Old 03-28-2020, 11:08 AM
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Thanks for posting David.
Old 03-29-2020, 10:55 AM
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I think this is great info... I'm going to call a couple of small banks around my area first thing monday morning.

I'm guessing that everybody is going to try to apply for this ASAP and smaller institutions may be a better option.
Opinions?
Old 03-29-2020, 11:34 AM
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Originally Posted by emudryj View Post
I think this is great info... I'm going to call a couple of small banks around my area first thing monday morning.

I'm guessing that everybody is going to try to apply for this ASAP and smaller institutions may be a better option.
Opinions?
Who knows. Our business bank is WF so we will start with them.

Smaller ones my be more responsive but bigger ones may be more informative and prepared. Although I doubt any of them will be doing anything until the SBA guidelines are released. As of now there isn't even an application available to start the process. As said, start getting all of your documentation together now so you are ready to go when they are. Looks like they will need at least information about payroll, tax returns, healthcare costs, utilities, rent / mortgage.
Old 03-30-2020, 09:25 AM
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More Info. The banks are taking applications now.
Good day everybody.

https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act


https://www.sbc.senate.gov/public/_cache/files/9/7/97ac840c-28b7-4e49-b872-d30a995d8dae/F2CF1DD78E6D6C8C8C3BF58C6D1DDB2B.small-business-owner-s-guide-to-the-cares-act-final-.pdf


023595_comm_corona_virus_smallbiz_loan_final_revised.pdf
Old 03-30-2020, 10:22 AM
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Originally Posted by David2 View Post
Who knows. Our business bank is WF so we will start with them.

Smaller ones my be more responsive but bigger ones may be more informative and prepared. Although I doubt any of them will be doing anything until the SBA guidelines are released. As of now there isn't even an application available to start the process. As said, start getting all of your documentation together now so you are ready to go when they are. Looks like they will need at least information about payroll, tax returns, healthcare costs, utilities, rent / mortgage.
As of a few minutes ago...WF hasn't received any funding from the government...at least thats what my contact is saying. I presume the larger banks would get funding first just to increase access.
Old 03-30-2020, 10:24 AM
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Munchin said details would be released later today. Assume there will be a specific PPP loan application and not the standard 7a paperwork?
Old 03-30-2020, 10:31 AM
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Filed this morning, pretty painless. We will see how long it takes to get the $
Old 03-30-2020, 10:43 AM
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My lender at City National Bank Florida is approved for these loans ... If anyone wants his contact info PM me ...
Old 03-30-2020, 11:00 AM
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Originally Posted by reeltateredfishin View Post
Filed this morning, pretty painless. We will see how long it takes to get the $
Did you file for 7A or PPP ?
Old 03-30-2020, 11:02 AM
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There is also this link from SBA:https://disasterloan.sba.gov/ela/
Old 03-30-2020, 11:07 AM
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This is much better than the 90 day deferment on my current SBA 7a loan! As David said, it looks like it is going to be free and my SBA agent is on it like a Pit Bull on it's owner! Thanks David for posting!
Old 03-30-2020, 11:11 AM
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Go to SBA.gov and click the yellow link up top. Fill that portion out first, then you will need to fill out:

SBA Loan App OMB no. 3245-0017
OMB 3245-0188 (personal financial statement)
SBA Form 2202 (10-15) (Liability Schedule)
and submit 2018 or 2019 tax returns

You can upload all of those signed docs into the portal on the website.
Old 03-30-2020, 11:18 AM
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Originally Posted by sand key View Post
As of a few minutes ago...WF hasn't received any funding from the government...at least thats what my contact is saying. I presume the larger banks would get funding first just to increase access.
None of them have. It's my understanding that no bank will actually receive any funds now. The money will come from the banks themselves at a 4% interest rate. The Feds will then forgive a portion as noted above which I guess is when the bank get reimbursed for that amount. The rest will be regular bank business but based on the new guidelines.

Here is what our WF relationship manager sent us today:

I hope you and your loved ones are staying healthy. Below is a link with information regarding the CARES Act. Wells Fargo will participate in the program. We are expecting additional guidance from the SBA regarding how to apply for Program loans. I have a list of customers who would like to apply and will follow up as soon as we have clear guidance on how to proceed. I have added your name on the list and will follow up with you.

https://www.venable.com/insights/pub...-to-know-about

Old 03-30-2020, 11:21 AM
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Originally Posted by reeltateredfishin View Post
Go to SBA.gov and click the yellow link up top. Fill that portion out first, then you will need to fill out:

SBA Loan App OMB no. 3245-0017
OMB 3245-0188 (personal financial statement)
SBA Form 2202 (10-15) (Liability Schedule)
and submit 2018 or 2019 tax returns

You can upload all of those signed docs into the portal on the website.
Hang on here. You will not be applying or getting money from the SBA. This is a completely different program than the usual SBA loan process and all will be done at your bank.
Old 03-30-2020, 11:24 AM
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Originally Posted by David2 View Post
None of them have. It's my understanding that no bank will actually receive any funds now. The money will come from the banks themselves at a 4% interest rate. The Feds will then forgive a portion as noted above which I guess is when the bank get reimbursed for that amount. The rest will be regular bank business but based on the new guidelines.

Here is what our WF relationship manager sent us today:

I hope you and your loved ones are staying healthy. Below is a link with information regarding the CARES Act. Wells Fargo will participate in the program. We are expecting additional guidance from the SBA regarding how to apply for Program loans. I have a list of customers who would like to apply and will follow up as soon as we have clear guidance on how to proceed. I have added your name on the list and will follow up with you.

https://www.venable.com/insights/pub...-to-know-about
This is what my SBA agent told me as well. She said they should get their info by mid week.

Old 03-30-2020, 11:29 AM
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You can still apply directly yourself as of today without waiting for bank. It allows you to put in you bank routing and acct# to receive 10k within three days. You can also wait until you bank gets approval but that will more than likely be mid April and who knows how much $$ will be left according to my commercial banker. I was advised by my CPA,Lawyer and banker to file directly asap. So that is what I did.

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