If you or your clients missed out on the first round of Small Business Administration loans under the Paycheck Protection Program, you’re not out of luck yet.
On April 23, Congress approved its latest coronavirus-related emergency relief bill. Known as CARES 2 — that’s CARES, as in Coronavirus Aid, Relief, and Economic Security Act; Congress is almost as good as the CPA profession with its acronyms — the new round of emergency funding comes in at $484 billion, including $310 billion for the PPP. President Trump signed the bill into law on April 24.
You might recall the first round of PPP funding came in at $349 billion. It ran completely dry in less than two weeks.
So yes, you and your clients have another shot at some emergency funding … but you’d better move fast. These loans won’t last long.
And when I say “move fast,” I mean “almost immediately.” Here’s what the Small Business Administration and the Treasury Department have to say:
“The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 a.m. EDT from approved lenders on behalf of any eligible borrower. This will ensure that the SBA has properly coded the system to account for changes made by the legislation.
“… We encourage all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously. All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan.”
The clock’s ticking, friends … starting now. Good luck.
Here are a few other resources that might be of help.
FAQs about Paycheck Protection Program loans
The SBA updates this list of FAQs on a continuous basis. Check back often.
Documents and calculations to use in PPP applications
The AICPA is recommending a defined set of documents for lenders to rely on as well as some key clarifications in the PPP application process.
SBA warns that larger companies may not qualify for PPP loans
The SBA says larger companies with adequate sources of liquidity have a responsibility to certify their PPP eligibility, the Journal of Accountancy reports.