PPP loans have truly been a lifesaver for so many small businesses over the last year, but all good things must come to an end, and the PPP funds are no different. Despite the application deadline being pushed back a couple of months, many are projecting that the $66B in remaining funds may not last much longer.
The SBA has several loans in the pipeline, with new applicants submitting paperwork every day. Several thousand small businesses have applications that are on hold due to error codes in the system, and some are estimating that the funds may run out as early as mid-April if applications continue to funnel in at their current pace.
While the rate at which the funds are being distributed may seem alarming, we are dedicated to doing all we can to help our clients receive the funding that their businesses need. Being proactive is key, so here are a few things you may need to know if you are planning to apply for a First or Second Draw PPP loan:
- Don’t wait to apply! The application deadline has been extended from the end of March to May 31st but that doesn’t mean funds will be available until that date.
- Contact your banker as soon as possible. The rules and guidelines of this program change often. Your banker is going to be able to provide you with the most accurate and current information and will help you expedite the process any way they can.
- Check and re-check your application and paperwork. Although it may be tempting to rush through the process to get your application submitted, taking the extra time to double check your application and ensuring that you’re submitting all required documents is crucial. You will save time in the long run by making sure your application is submitted correctly the first time.
The First Draw application can be found here.
The Second Draw Application can be found here.
If you are a sole proprietor/independent contractor, the First Draw application can be found here.
If you are a sole proprietor/independent contractor, the Second Draw application can be found here.