In yet another Interim Final Ruling, (they’re never “final”), the SBA published new guidance to speed up the forgiveness process on PPP Loans of $150K or less. These new rules are only applicable to 2nd Draw PPP Loans.
Welcome to the COVID Revenue Reduction Score.
When a borrower does not submit documentation on revenue reduction at the time of the loan forgiveness application, the SBA now has an alternative form for revenue reduction confirmation.
Each 2nd Draw PPP Loan of $150K or less will be assigned a Covid Revenue Reduction Score created by an independent, third-party SBA Contractor based on a variety of inputs, including
1 – Industry
2 – Geography
3 – Business Size
4 – Current Economic Data on the Economic Recovery, and
5 – The Return of Businesses to Operational Status
This score will be maintained in the SBA’s loan forgiveness platform and will be visible for lenders to use as an alternative method to document revenue reduction levels. It will also be visible to borrowers who use the SBA Loan Forgiveness Platform.
The score can be used to satisfy the requirement to document revenue reduction.
I don’t know about you, but this scares me. It sounds like nothing more than fuzzy math. Maybe it will be able to help some of you, but it also might be used to hurt you because it isn’t based on the actual reality of your individual circumstances.
Either way, you should know about it just in case.
Let me leave you with this.
The kids went back to in-person learning today in the Chicago Public School System. I’ve been writing about some of the numbers involved, but let me bring my point closer to home.
My wife Julie is from a small town in Indiana named Kendallville. It’s an older rust belt town of 20K people.
They opened their school system two weeks ago, and have already shut it down, moving back to virtual learning. Within two weeks they had 48 new confirmed cases of C-19 inside their student population.
It happened so quickly that they didn’t have a choice. They simply had to shut it down.
Let’s not forget that Chicago isn’t like the rest of our state. We reside in Crook, sorry Cook County, which is only 1 of 102 counties in Illinois. Our vaccination levels are over 50%. Most of the downstate counties are at 25% – 30%.
Jasper County in southern Illinois is only at 18%, but that’s everyone. Let’s think about the kids in school where children under 12 cannot be vaccinated. In addition, we now have the Delta Variant which is twice as communicable.
They’re saying that they’ll be able to keep 5 year-olds three feet apart, but how can anyone reasonably accomplish that?
The question becomes if the numbers get out of hand again, will they just shut down the schools, or everything else along with them?
Your guess is as good as mine, but let’s remember that our Governor has begun his re-election campaign. Being safe rather than sorry, and following the science, is only good politics for his campaign.
Be ready. Be prepared. Fall is coming.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Bookkeeping and Tax Work, you can rely on us. I’m here and I remain,
Accounting Solutions Ltd.
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