Having Trouble Applying for a PPP Loan? You’re Not Alone
The $350 billion federal Paycheck Protection Program (PPP) was a key part of the recently passed $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act.
While applications could be submitted beginning Friday, April 3, 2020, many businesses and banks (those qualified to approve, process and distribute the PPP loans) have experienced difficulties because of changing guidance and requirements and the sheer number of applications coming in.
As requirements and guidance on the process change, Ericksen Krentel professionals are available to help you gather the required information and prepare you for the loan application process for when you and/or your bank are ready to begin their process. Your Ericksen Krentel professional can also help you determine which form of relief is best for you, whether it’s a PPP loan, tax credits or a U.S. Small Business Administration Economic Injury Disaster (EIDL) Loan.
Ericksen Krentel continues to monitor the ever-changing guidance and requirements for the PPP loan application and debt forgiveness process to ensure you receive the maximum benefits. Our team is ready to help create a customized approach for your organization to effectively, and correctly, use those funds to guarantee maximum forgiveness. If you received PPP funds and need assistance in allocation and forgiveness documentation or calculation, please contact us by clicking here.
The Associated Press reported on Tuesday that the SBA’s loan processing system stopped working Monday, April 6, 2020. Confusion about the documents lenders needed from customers to complete loan transactions still remained, according to a trade group for community bankers and the CEO of an online lending marketplace.
SBA spokeswoman Carol Wilkerson said Tuesday afternoon there have been more than 275,000 applications received for loans valued at $75 billion since the program launched, according to the AP article.
Some local, regional and national banks had posted the following messages as of later afternoon April 8, 2020, as they try to get financial relief as quickly as possible.
“We have received forms from customers expressing interest in the PPP that we expect will fill the company’s capacity to lend under the program, as Wells Fargo continues to operate under existing asset cap limitations. Given the exceptionally high volume of requests we have already received, we will not be able to accept any additional requests for a loan through the Paycheck Protection Program. We will review all expressions of interest submitted by customers via our online form through April 5 and provide updates in the coming days.”
“Unfortunately, we are not able to process applications from any businesses [for PPP loans] that do not already have an active primary checking account with Hancock Whitney.”
“We are working around the clock to finalize our digital application process for the new Small Business Administration (SBA) Paycheck Protection Program to ensure that it is fully functional and compliant. We are currently testing the effectiveness of our submission process with a small number of existing business banking customers. We anticipate being able to accept applications online shortly. Please note that business owners who apply for a Paycheck Protection Program Loan through Capital One must have a business banking relationship with us as of February 15, 2020. If you are not an existing Capital One customer, we encourage you to contact your primary bank for support with the Paycheck Protection Program.”
“First Bank and Trust has limited applications for the PPP loans to our identified market area which includes: Louisiana, the Mississippi greater metropolitan areas of Biloxi and Gulfport and the Florida panhandle.”
As questions or concerns arise, we ask that you contact us so we can address them as quickly as possible to ensure we continue to meet your needs. As a reminder, you can always monitor our COVID-19 Updates webpage by clicking here for the latest or monitoring our accounts on LinkedIn, Twitter or Facebook.
Ron Samford, president and CEO of Metairie Bank, told New Orleans CityBusiness that by the end of Wednesday his bank will have processed more than 130 loan applications totaling $20 million. Another 100 applications are in the pipeline to submit to the SBA for approval, and he said “we are receiving new ones daily.” None of the loans have yet been funded, he told CityBusiness, because of a lack of guidance from the SBA on what the terms should be and how the “forgiveness” aspect of the loan should be referenced in the loan documents.
About Ericksen Krentel
Ericksen Krentel CPAs and Consultants, founded in New Orleans, Louisiana in 1960 with offices in New Orleans and Mandeville, believes that serving as the clients’ most trusted adviser is grounded in going beyond the numbers.
That includes helping clients achieve their business and personal financial goals by providing innovative and exceptional services in the following areas: audit and assurance services, tax compliance and planning, outsourced CFO services and business valuations for a variety of industries; employee benefit plan audits; fraud and forensic accounting; business planning; IT consulting; loss calculations; and estate planning.
Learn more at www.ericksenkrentel.com.