Next Round of PPP Loans: Get Ready!

As you have probably heard, the next round of PPP funding has been passed by the House yesterday and you should be able to apply for a PPP loan again very soon – maybe as early as tomorrow afternoon. Here’s what we think is important to know. Next Round of PPP funding: Get Ready!

1. How do I confirm that I wasn’t approved for a PPP loan already?
There has been lots of confusion around the pretty unclear PPP loan process. Your lender should have gotten back to you by now, but some news may come in late. In short, if you only signed the PPP “Borrower Application Form”, you have likely not been awarded funds. The first true confirmation that PPP funds have been allocated to you is the issuance of an E-Tran number from the SBA.
If you received an E-Tran number but no funds yet, get in touch with your lender to verify next steps.

2. What should I know about this upcoming round of PPP funding?

  • The process will most likely be exactly the same as the first round, and still first come first serve, so time is of the essence.
  • You can apply for a PPP loan more than once via different lenders, and once you are approved, you will just have to make sure to retract other applications.
  • Consequently, you should pre-apply for a PPP loan through multiple lenders, starting with the ones you have relationships with.

3. Do I need to resubmit my application if I submitted it a few weeks ago and haven’t heard back?
Most banks are not requiring applicants to resubmit in order to be considered under the new funding. That said, it is critical to check with your bank/lender as they are all different.

4. What are my different application options?

  • Your own bank: Make sure you are already in the queue ready to be processed as soon as funding is available.
  • SBA-approved Fintech lenders: Focus on existing partners that know and trust you already, for example some Fintech companies that you may have accounts with: SquareIntuit/QuickbooksPaypal, etc. An important caveat is that via some platforms, PPP loan amounts may be calculated automatically and won’t allow you to maximize them; some of our manufacturers have reported auto-calculated amounts being as little as 25% of the amount a bank would help you apply for.
  • Other online lenders: We can report that the following lenders have been used by our manufacturers: LendistryKabbageDivvyLendio.
  • Other banks: We hear that the following banks may still accept PPP applications from non-existing customers: Beneficial State BankCalifornia Statewide CDCCentral Pacific Bank and City National Bank. You can also check out this PPP lender list put together by Small Business Majority and this crowd-sourced spreadsheet managed by Gusto.

Please note that we aggregated all this information from different sources and can’t vouch for their validity or that it is still relevant.

Other Federal funding programs

1. SBA’s EIDL disaster loans
This next round of funding will allocate $50 billion to the EIDL program, but contrary to the PPP program where your lender can get ready to submit your application, there is no existing queue for EIDL. This means that as soon as funding gets approved, the SBA will likely immediately turn applications back on: monitor the SBA website and get ready to apply for an EIDL loan in the next few days.

2. Applying for or receiving both a PPP and an EIDL loan
Yes, you can apply to both a PPP and an EIDL loan, but make sure to use each set of funds for different purposes. For example, if you hope to maximize PPP forgiveness, you will likely use it mostly for payroll, and will likely use EIDL funds for non-payroll expenses like inventory, accounts payable etc. Detailed and clear accounting practices will be critical to prove the forgiveability of the funds.
Please note that the law is not clear as to whether you can use EIDL funds for payroll after you have exhausted PPP funds or after the 8-week period. We recommend you use funds for different expense types for now, and this questions will hopefully be officially clarified soon.

3. Future rounds of funding
The new round of funding should replenish the PPP and EIDL programs for the short term. Just know that Congress called this new round an “interim measure” which also gives us hope for future rounds of additional funding.

4. Main Street Lending Program: for large companies
This new program should be available at the end of this month and is mostly applicable to larger companies with a minimum loan amount of $1 million, a relatively low interest rate and no forgiveness. If you need more information, reach out to us or ask your financial consultants. Here’s more information with relevant fact sheets from the Federal Reserve.

New grant programs

You should know about two more grant programs:

1. LISC’s Small Business Relief grants now taking applications
LISC’s Rapid Relief & Recovery Fund program is now taking applications for Small Business Relief grants. Make sure to review Grant Information Overview and FAQ here, and apply here by Tuesday, April 28th, 11:59 p.m. ET.

2. Salesforce grant applications open April 27
Salesforce has announced that California small businesses between 2-50 full-time employees and revenue between $250K-2M can apply starting Monday, April 27: more information here.

Manufacture : San Jose’s job board: a temporary resource for your employees

We understand that your laid-off employees, their family members and friends may be looking for a part-time opportunity during this difficult time. We have recently added some new jobs to the MFG:SJ Job Board that may be a good match for those looking for extra income.

Please inform your employees of this resource, and we hope to be adding new opportunities regularly. Our job board is here.

Virtual Job Fair

Manufacture : San Jose is proud to participate in a Virtual Job Fair on Wednesday, April 29th hosted by work2future, in collaboration with San Jose City College. This job fair is “free” and  will be open to SJCC students & the general public. You can register for this event here.

Additional resource links

Manufacture : San Jose’s COVID-19 resource page
We remain committed to keeping you updated on all available resources for the manufacturing community. This information is now centrally located here.

The City of San Jose’s Covid-19 resource page
The City of San Jose is sending daily updates on city services and operations. For more information, including a link to sign up to receive updates, click here.

You can expect us to email again with important updates. We will do all we can to support you through this crisis.

Please keep reaching out to our staff, in particular:

  • Athena, Workforce and Youth Programs Coordinator (email or call – ext. 2) with any HR/workforce/UI questions, and
  • Michael, Regional Director (email or call – ext. 1) who can dispatch to our staff and volunteer advisors.

https://www.applecapitalgroup.com/check-protection-program-additional-eligibility-criteria-updated-4-20-20/

 

Published On: August 31st, 2022 / Categories: Uncategorised /

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