UPDATE: 4/28/20
I have heard from members applying for these programs. Here are some experiences:
PPP – application was unable to be processed 4/27 by lender because the SBA computer system went down within a few minutes of opening. Lenders are submitting and re-submitting applications in hopes of getting their clients in the queue.EIDL Loan Grant – Some members applied for the EIDL loan grant a few weeks ago only to have the rules changed restricting the amount and criteria for funding. Some received the entire $10,000 amount even though they were under the impression they would not. If you applied for an EIDL Loan Grant, keep an eye on your checking account and consult your tax professional if you receive funds.It is not clear at this time if the $10,000 is actually a grant or a loan.
Thank you members for your input. We will be forwarding this information to elected officials, NAR, AR and other decision makers.
At 12 noon Eastern time on April 25, 2020, President Trump signed HR 266, the increased funding bill for the Paycheck Protection Program ($310 Billion) and EIDL Loan program ($50 Billion).
The bill also includes funding for:
- Agricultural Enterprises with no more than 500 employees as defined by SBA are now eligible for EIDL Loans
- Set asides for small community financial institutions, community development institutions, and credit unions
- Health Care Providers
- COVID-19 Testing
- EIDL Grants – an additional $10 Billion
There are limited funds in this expansion. Apply for your PPP or EIDL loan today so that you have a place in the queue on April 27th when the SBA starts releasing funding under HR 266.
When it came to applying and getting PPP and EIDL funds, members and small businesses have been frustrated by the lack of access to even apply. In HR 266, not only is attention given to small and community lenders, but the addition of FinTech should be helpful as well. The SBA created a list of approved lenders as of April 23, 2020. You can also access the SBA lender portal. Forbes printed an article with Fintech PPP lenders such as Quickbooks Capital, PayPal and other fintech lenders.
Still, almost everyone agrees, funding is not adequate to meet the need. Apply today and follow up diligently to make sure you are in the queue. NAR posted a video in which members who received funds describe their experience.
Senator Rubio and the Senate Committee on Small Business & Entrepreneurship provided a Paycheck Protection Program FAQ that will be helpful to Independent Contractors, self-employed and small business. With all the changes, starts and stops to these programs, it is important for those who choose to access one or more of these programs to read and understand timelines, deadlines, documentation requirements, and what can or cannot be included in PPP and EIDL Loan as acceptable costs.
I suggest you use the Paycheck Protection Program application as a guide to your ability to qualify.
Be very careful to include different expenses in your EIDL Loan than in your PPP loan so that you do not double-dip. If you decide to use the Employee Retention Credit, you won’t be able to use the PPP loan.
Feeling confused? You are not alone. There are conflicting statements from government agencies and some of the agency guidance is in conflict with the actual law. Document who you talk with, what they say, and the website pages you see when you act. Website pages change, snip a picture of the web page at the time you follow the instructions. It may come in handy at some point. NAR has created a helpful info graphic comparing the PPP and EIDL programs, and PNC bank has a detailed comparison of the two programs.
Forbes has a series of articles designed to help you understand the implications to you and your business when you accept funds under these programs.
Remember to consult your business attorney, CPA or other tax professional, and other business consultants who can help you decipher the programs and make decisions best suited to you, your employees, your business and your family.
Here are some helpful links:
Treasury Department guidance April 24, 2020
Department of Treasury CARES Act for Small Business
Fillable Paycheck Protection Program Application (4/24/20)
SBA guidance Final Interim Rule on PPP promissory notes, authorizations, affiliation & eligibility 4/24/20
SBA PPP 1-page overview
U.S. Chamber of Commerce Decision Making Tool for Small Business
NAR Updated CARES Act FAQ 4/24/20
WeSERV GAD – Paycheck Protection Program
WeSERV GAD – EIDL Loans and Grants
WeSERV GAD – Update on Corona Virus Programs Apr. 21 2020
WeSERV GAD – Complete list of Corona Virus podcasts and blogposts
NAR Right Tools Right Now