Good afternoon, everyone,
I hope this email finds you doing well. As you are probably aware, information changes daily regarding loan applications, processing, etc. We will do our best to provide you with information, but please check with the appropriate entity to ensure you are reviewing the most current information available. Please note the following:
Beware of Scammers:
- The IRS is urging taxpayers to be on the lookout for an increase of calls and email phishing attempts about the Coronavirus, or COVID-19.
- Watch for scammers who may emphasize the words “stimulus check” or “stimulus payment”, as the official term is economic impact payment
- Beware of phone calls or texts asking for verification of personal and/or banking information, saying that is needed to receive or speed up your economic impact
- 4/3/20: small businesses and sole proprietorships were able to start applying for loans.
- 4/10/20: Independent contractors and self-employed individuals can begin applying.
Many lenders are not set up to process the loans just yet, given that the loan program passed through Congress a week ago and is still being updated by the Small Business Administration (SBA). Lenders are scrambling to get this in place and some will not be ready to process loans until next week. The best bet is to check with your existing lender to see when they can apply via their system.
Economic Injury Disaster Loans (EIDLs) can be rolled into PPP loans
, which are separate from PPP loans, are an option for small businesses right now but these are being changed now so they can be rolled into your Paycheck Protection Program loan. This means if you apply first for EIDL loan and then secondly for a PPP loan, all debt may be put under the PPP loan terms. Some entities may still be better off only having an EIDL loan and not apply for a PPP loan at all, depending on your financial circumstances. Please discuss this with your financial advisor and refer to the SBA for the most up to date information at:
Pay close attention to how you are spending PPP loans
Be extremely careful with record-keeping if you get a PPP loan, in order to request some or all of the loan forgiven at the end. If you get the loan, it is recommended to use software (ex. QuickBooks) to create a “class-tracking system” and treat this money like its own class. Make sure you are able to account for all expenditures as required.
For more resources from the U.S. Chamber of Commerce:
Before making any business decision, you should consult a professional who can advise you based on your individual situation.
I wish you all a safe and healthy weekend.