April 7, 2020
If you have been following the roll-out of the CARES Act, you know it has been a little bumpy. So, here are a few updates to the information we shared last week. The most current information can always be found on our
, as well.
- Paycheck Protection Program (PPP) Borrowers are reporting mixed results in applying for PPP. As of now, PPP is only being offered through existing SBA 7(a) lenders. Some larger banks are only accepting applications from businesses who have existing loans with them, but an increasing number of local banks and credit unions are getting their systems online to accept applications. Feel free to reach out to your CFNE loan officer if you are having trouble finding someone to take your application, as we may be able to suggest a lender near you.
- If you are successful in submitting an application, let us know that, too, so we can add your lender to our list. If your local bank is not ready to accept an application, we have spoken with Radius Bank, a national bank based in Boston, that will accept PPP applications from CFNE’s borrowers. You can access it at ppp.radiusbank.com, and use the referral code CFNE. This will bump you up the queue, but there is no guarantee that your application will be approved.
- Economic Injury Disaster Loans (EIDL) The Small Business Administration just clarified how they are calculating the “advance” portion of the EIDL: Small businesses will receive $1,000 per employee, up to a maximum of $10,000 (i.e. not a flat $10,000 as previously advertised). You can take out both an EIDL and a PPP loan, provided they are used for different purposes, but any EIDL advance will be deducted from the PPP loan forgiveness amount.
- Loan Application Guidance for Co-ops - Current guidance from the SBA recommends that co-ops submit an addendum with federal loan applications, explaining the ownership structure of the co-op and authorizing the filing member - ideally the Board President - to fill out the application on behalf of the co-op. The ICA Group has sample addenda for the EIDL and PPP under “Special Considerations for Cooperatives” on their COVID-19 page.
As a reminder, if you currently have a loan or line of credit with CFNE, please send us a copy of any new loan applications (or a notice of approval, if you already applied) before closing on additional loans. This helps ensure that you comply with our loan documents and that we can provide you with whatever support we can.
We know this is a stressful time for most of us. Please do reach out to us to let us know how things are going and discuss how we might be of assistance.