CreatedTuesday, April 28,2020 at 5:11 PM
With round two of funding from phase 3.5, the Paycheck Protection Program and Health Care Enhancement Act ready for an SBA restart, businesses, and non-profit organizations will be divvying up a new pie with:
This is an important next step for those who were...
This is an important next step for those who were unable to receive funding in round one based on the speed with which the funds were depleted. In my first PPP blog, I shared some experiences, with the hiccups I’d either seen with clients or heard anecdotally, on the initial challenges with the first round. But wait, there’s more.
For those who have received funding, the sense of relief is combined with a myriad of “what’s next” questions. Indeed, the ambiguities of the funding are ample. Now there are even greater ambiguities revolving around the loan forgiveness calculation. Here are some key questions:
Interestingly, you’ve probably heard of some organizations that rushed to apply and receive the money or at least get in the queue, and then once the money arrived, had second thoughts, bad press or both. Any business person knows the best time to qualify for a loan is when you don’t need it. So, what if your business outlook actually looks better now than it did when you applied for the loan on April 3? What if is looks better two months or two years from now? Can you or should you decline it? Is it advisable? The Treasury Department just announced a plan to audit all loans over $2 million, does this change your thinking, how about the relief you felt when you got your SBA approval. Some things to consider:
I’ll be back with more tales from the front as the PPP and related loan programs continue. In the meantime, if any of us from Clayton & McKervey can assist you, please let me know.