What to do if you didn’t receive funding during the first round.
Over the past weeks, we’ve seen the creation and depletion of the Paycheck Protection Program. The program was created under the CARES Act to provide forgivable loans to small businesses that keep employees on their payroll during the COVID-19 pandemic.
As the chance for more funding is upon us, we wanted to be sure you knew some steps to take to ensure you’re prepared and ready to apply when the times comes.
1. Talk to Your Bank
For those that did apply previously, we suggest knowing where your application is with your bank. If you didn’t hear from your bank at all after submitting the first time, we suggest getting in touch with someone ASAP. It’s possible your bank has a large volume of applications and they weren’t prepared to handle all the applications that came through. No business should be left in the dark. Finding out how many applications there are and how far into the log your application is could be the difference between funding and no funding.
If you are unable to get in touch with your bank regarding your application we suggest reaching out to other lenders to see if they are accepting applications. You can withdraw and resubmit your application if you feel you’ll have a better chance elsewhere.
For those who didn’t previously apply it’s time to find out if your bank is prepared to accept applications. Some banks have large backlogs of applications from the first round of funding from the program. Ask your bank how many applications they have already, how many they processed the first time around, and the chances that your application will be considered for funding.
There are banks that are accepting applications from non-clients that may have better availability to assist you with processing your PPP applications.
2. Consider Other Loans
While we suggest any small business or organization apply for these forgivable loans, the reality is that some businesses won’t have the capacity to bring back a workforce with this funding to be eligible for the full forgiveness. The second round of funding will be putting more money back into to Economic Injury Disaster Loans (EIDL) Advance Program that offers $10,000 emergency cash to businesses in need now who apply for relief through the EIDL program.
For some businesses that have already drastically reduced or lost staff, this emergence money is another great option. The $10,000 grant is said to be received within 3 days of approval of the loan while the rest of the application is finalized and approved. The interest rates are 3.75 for small businesses and 2.75 for Non-Profit organizations.
3. Prepare any documentation needed
Whether you decide to apply for the Paycheck Protection Program or the EIDL with funding from the CARES Act, there are some documents you’ll need to be sure you have ready.
Download Our Paycheck Protection Program Checklist HERE to see what items may be required when submitting your application.
For documents required for the EIDL, some lenders require more documentation than others. More information about the EIDL can be found HERE.
If you need assistance determining which loan may be a better fit or need help gathering documentation, calculating eligibility, or anything else with funding please hit the button below to contact us. We are here to help small businesses and non-profits get the relief they need.
At All In One Accounting, we take businesses from financial chaos to business clarity and beyond. Our elite team of Accountants, Controllers, and CFOs are ready to help you in these uncertain times. Visit our website here for a free consultation with one of our accounting professionals.