The Small Business Administration is now finalizing aspects of it’s upcoming loan forgiveness portal which is slated for a rollout near the end of August.
Details on the platform are available given the documentation the SBA has published online for application developers. This includes different “Use Cases” where the SBA will allow some small businesses to apply for forgiveness directly to the SBA. This would mean bypassing the banks altogether.
There are many problems that immediately come to mind.
1 – Why would the SBA want to bypass the banks, given the fact that the banks are operating as gatekeepers? The banks now make sure that the 3508 applications are proper prior to them being submitted to the SBA. Why would the SBA want to take on that additional work, being as understaffed as they are?
2 – Most smaller business owners aren’t paying firms like mine to do their forgiveness forms. They complete a form themselves. breaking every rule in the book. Will the SBA actually take the time to tell them what’s wrong so that the loan can be forgiven, or will they just reject the application altogether? This might lead to a flood of 3508’s being outright denied.
3 – How will the SBA coordinate with the banks to stop them from charging loan payments on forgiveness forms that have bypassed them? Many of those payments begin in August.
Stay tuned. More will follow.
Let me leave you with this.
Chicago added three more states and the U.S. Virgin Islands to it’s C-19 travel advisory. Daily average cases are now up to 90 in Chicago, after dipping to 34 last month.
The mayor seems to be getting everyone ready for another lockdown. Yesterday, she stated, “If we allow the virus to linger here in Chicago, we will likely see further mutations, some of which our current vaccines may not be able to protect against, and have to reinforce some of the restrictions that infamously defined 2020 and part of 2021.”
Here we go again. If one thing is certain, it’s that once this thing starts moving in a particular direction it doesn’t stop until something major makes it go in another.
I’m suggesting that you think this through. Don’t be caught flat-footed if they begin shutting things down again. Have a plan in place. Know what you are going to do.
What’s heart-breaking about it this time is that it’s preventable. If you have anyone who hasn’t been vaccinated, talk to them. Personally, I gave my people a cash incentive to be vaccinated, and it worked.
Think about the numbers. If one of your people comes in with the Delta Variant and half of your people haven’t been vaccinated, how much money will you lose? Being proactive about this seems the best approach. It’s pennies on the dollar.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission of protecting you, your family, and your business. If there is anything you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
CONFIDENTIALITY NOTICE AND LEGAL DISCLAIMER. The information contained in this email message, including any attachments, is legally privileged and confidential and intended only for the addressee(s). If you are not the intended recipient, you are hereby notified that any reading, use, or dissemination of this message is strictly prohibited. If you have received this message in error, please notify us immediately and delete this message from your system.
Although this email and any attachments are believed to be free of any virus or other defect which may affect any computer system into which it is received and opened, it is the responsibility of the recipient to ensure it is virus free. Accounting Solutions Ltd. accepts no responsibility for any loss or damage arising from receipt and use of this email.
Note that the only professional services provide by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.