As Congress mulls over yet another change to the PPP Loan Forgiveness Process, I thought that I would share some insight with you on this process from the standpoint of the banking industry.
Let’s review how banks make money. It’s all about lending. They can charge you fees until you’re old and grey, but lending is how they turn a profit. You put money into your corporate checking accounts. They pay you absolutely no interest. Then they lend it back to you and have the unmitigated gall necessary to charge you interest. There’s all sorts of other little things that happen in between, but that’s the game in a nutshell.
Given your new found understanding of the banking industry, do you actually think that they are going to make it easy for you to get a loan forgiven?
Take a moment and actually think about it. Why would they make this an easy process? Do you think that banks can pay their bills by paying people to lend you money and then make it easy for you to not pay them any interest?
Do you really think that Mother Theresa works at your local branch?
Don’t tease yourself. Just because Congress passes a bill, the President signs it into law, and The SBA Guarantees the loans doesn’t mean that The Entire Banking Industry all of a sudden became saints. I have spoken to a couple of my friends that are lenders, and they are both saying the same thing.
They aren’t going to make this easy.
If they make this difficult and you don’t want to pay the money back on an eighteen month amortization schedule, then you will probably ask them to finance the amount at a higher interest rate for the bank.
In other words, the harder they can make this, the more money they will make.
Many of you have asked for help in this regard, and we have put together the following program. We will provide consultation services to assist you and will complete the forms, schedules, and documentation necessary to apply for and request full or partial Program Loan Forgiveness. The point is that we will endeavor to put together a fool proof audit package that even the most surly banker should not be able to refuse.
The following outlines our program…
– Gather information on the exact amount of the PPP Loan and the date that the amount was funded
– Provide an initial virtual consultation to
– Review forgiveness requirements
– Provide an initial estimate on the amount of loan forgiveness
– Begin the process of collecting documents
– We will provide continuing assistance and consultation up to the date of program forgiveness form submission
– This will occur approximately four weeks after initiation of The PPP Loan
– Provide another virtual consultation
– Review forgiveness requirements
– Continue collecting the documents necessary for the forgiveness application
– See if you are still on track for a full or partial forgiveness of the loan
– After the eight week period of PPP Loan Funding is completed, we will prepare the Payroll Protection Program Loan Forgiveness Application and any additional Schedules and Documentation for submission to your lending institution or governmental agency.
Our fees are based upon the size of your PPP Loan as noted in the table shown below.
|PPP Loan Size||Expected Total Fee||Due Upon Execution||Due After 4 Week Consultation||Due Upon Delivery of Loan Forgiveness Package|
|Less than $50,000||$1,250||$450||$400||$400|
|$50,000 – $100,000||$2,500||$900||$800||$800|
|$100,000 – $250,000||$3,500||$1,500||$1,000||$1,000|
|$250,000 – $500,000||$5,000||$1,750||$1,625||$$1,625|
|$500,000 – $1,000,000||$7,500||$2,500||$2,500||$2,500|
Existing Accounting Solutions Ltd. Clients will receive a 25% discount on this fee schedule.
If you have multiple PPP Loans for multiple entities, please provide multiple agreements for the individual entities and PPP Loan Amounts.
If you are interested, please go to the following link and sign up today.
If you have any questions, please let me know. I’m here and I remain,
Accounting Solutions Ltd.
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