Today, just a short update to keep you posted on some developments regarding the Paycheck Protection Plan (PPP) forgiveable loan program that virtually all small businesses and the self-employed are entitled to. You can find earlier newsletters with specifics about how to apply and how to qualify on my blog at PlanningShop.com/blog.
Remember: I am doing my last Facebook Live of the week today at 1pm EDT/10am PDT. Go here to join or to watch later. If developments warrant, I might do another on Friday, but I will definitely do another Facebook Live on Monday, April 13.
And if someone forwarded you this newsletter, sign up at PlanningShop.com to be sure to stay on top of the latest news.
- The roll-out of the PPP continues to be a mess.
- More money may be on the way—Treasury Secretary Steven Mnuchin wants Congress to allocate another $250 billion fast. Nancy Pelosi wants to make sure at least half that is set aside for smaller businesses and community banks—so they have a better shot at the money. (Current legislation actually allows hotels/restaurants with fewer than 500 employees in one location to compete with you for funds.)
- Keep trying if you haven’t been able to apply. Some websites were overwhelmed; some banks hadn’t started yet.
- Try different banks. Check to see if there are community and smaller banks that are approved SBA (7a) lenders.
- I have heard from two small business owners that they have actually been approved for the PPP (and one may have confused it with the SBA’s EIDL). The one that is for sure was a community bank in Iowa.
- Don’t forget to apply for the SBA’s EIDL loan. You can apply for both. The first $10k of the EIDL can be a grant. And you can use EIDL money for expenses not allowed by the PPP—such as other operating expenses.
MY COLUMN ON the PPP
Also, tonight is the first night of Passover and many of you may be preparing to observe Easter. Both holidays celebrate rebirth, revival. Passover specifically recounts the suffering from plagues. Both holidays offer hope and reminders that there is sunshine after darkness, Spring after Winter. As we, together, go through the plague of this virus, let us all remember that there are brighter days ahead. I wish you and your loved ones all the best during this holiday season—though it is so different from your holidays in the past.
Stay well. Stay home. Stay in business.
Copyright Rhonda Abrams, 2020