More PPP Funding – We Recommend You Apply NOW

[Copy of email newsletter sent out 4/23]

You probably saw in the news that there is additional Covid-19 relief funding working it’s way through The Senate and The House this week.  It is expected to be signed into law Friday, April 24th.

Often tax bills get last minute changes before being signed into law, so I generally do not address new legislation until it’s full passed and signed.  However, this is a situation where time is of the essence.

Part of this legislation is adding new funding to the Paycheck Protection Program (PPP) loan program. In essence, the PPP program allows you to cover the cost of wages or net self-employment income for 2 months and have the loan forgiven.  (See our prior newsletters on this in more detail on our website.)

The PPP loans are funded on a first come first served basis and I expect this new round of funding will run out within a matter of days.  Although there is $310 Billion in funding slated for the PPP loan program, it’s still not enough for the current need.

If you need this coverage and have not yet applied, I recommend you contact your bank’s loan department today.  PPP loan applications are being prepared now, before the law is passed, to help get people first in line to get funded.

Many of our clients have successfully received funding in this program and many were just too late in line.  Now is the time to get your loan application started with your bank to be early enough in line for funding in this upcoming second round.

As a side note, for some self-employed individuals, the state unemployment program is a better option to the PPP loan. These are very different programs – the PPP loan covers wages being paid to keep folks employed and the unemployed pays benefits to folks who are not employed.  Self-employed individuals can apply for either one (but not both at the same time). Unfortunately, I cannot tell you which program is better for your specific situation, but I recommend you consider both. (Unemployment claim info is here:

Finally, given how dramatically underfunded the EIDL program is, I do not expect it to be re-opened to new applicants, but you can monitor it on the SBA website. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

I hope this is useful in helping to prepare for this upcoming wave of relief funding,

Siobhan

 

B. Siobhan Q. Murphy
CPA, CMA, CFM, MBA
Thrive Business Group