A major difference in the PPP Loan process this time is that it seems to be taking much longer to get approvals. One of the reasons for that difficulty is a glitch in the SBA software.
Banks have found a technical error in the software portal they use to submit loans. The issue concerns borrowers who received a loan last year, who are reapplying for the second round. The portal is not allowing banks to resubmit an application on a borrower who is still waiting on a forgiveness application to be approved.
There are other reasons for the slower rollout on financing this time. Given the rampant problems and abuse the SBA had lending to undeserving borrowers, they have tightened up the review process. Rather than rubber stamping everything that comes in, they are actually requiring the banks to underwrite the loans. Internally, the SBA has also installed an additional review process.
The result is that 4.7% of the new loan applications have already been denied. In the first two weeks of lending, only $35B was disbursed.
I have spoken to a couple of you who had their loans denied. Please realize that much of this compliance work is being done by computers and everything needs to match. If the name on your application is “Accounting Solutions Limited” and the name on your corporate income tax return is “Accounting Solutions Ltd.”, it may result in a loan refusal.
The machine is going to check public sources like your Secretary of State Certificate of Good Standing, your payroll tax returns, and your income tax returns. If the information on your application doesn’t match, you may have difficulties this time.
Be careful.
Let me leave you with this.
Here we are in the dead of winter with snow up to our you know whats. The kids were supposed to go back to school, but the current administration gave in to union demands once again. You can’t go to a decent bar for a drink and many enterprises are still partially or fully shut down.
It’s pretty easy to let depression take over. This time of year things always look a little bleak, but hang in there.
Spring is coming.
A few short months from now, you’ll be walking down the street as a Cardinal sings a soliloquy in a willow tree. The sun will make funny shadows on the parkway as shiny cars roll by in the sultry afternoon.
You’ll get a table at your favorite outdoor cafe as the sun warms your cheeks on this bright spring day. You’ll be able to walk around without a mask choking off your breath or fogging your glasses.
You’ll have a cocktail and your favorite entree as you view a grandmother pushing a stroller, showing her new grandchild the beauties of nature. You’ll watch older children playing an impromptu game of baseball in the park, as an older couple walk arm in arm chatting lovingly.
In that very moment your heart will leap realizing that it’s finally over.
You’ll smile thanking whatever God you pray to that you made it through. You’ll be thankful for the many things you have, rather than aggravated by things you miss.
My brothers and sisters please realize that we’re through the worst of it. The sun will shine again and spring will come.
Keep looking up.
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. 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,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
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