Today, I offer additional information on the application processes for The SBA’s Payroll Protection Program (PPP) as well as The Small Business Resiliency Fund.
Payroll Protection Program
Please understand that nothing is actually in place yet on The PPP. All of the participating SBA Lenders are still waiting for the necessary procedural notice from The SBA in order for them to be able to start taking applications. Let’s remember the process. Congress passes a law and The President signs it. Now The SBA and its Lenders have to actually figure out how to do it. This isn’t some sort of automatic process.
We have been told that The SBA should have the procedural notice out to the Lenders this week. Maybe they will be able to start taking applications tomorrow.
I would like to thank my Brother Ron in the Publishing Business for providing the following information from his bank. This is the list of information that his lender is requiring in order to process the forgivable loan.
A written statement detailing how the business has been negatively impacted by COVID-19
Payroll statement showing they were actively paying salaries and payroll tax on 2/15/20
2019 year end (12 month) payroll statement from payroll processor
The payroll statement should provide additional information that identify the employees that receive compensation greater than $100,000 in the years period
IRS 941 form (quarterly form lists number of employees and wages, attached for reference)
IRS 944 form (annual form lists number of employees and wages, attached for reference)
1099s (if Independent Contractor)
1919 form on owners (see attached)
Articles of Incorporation/Organization
Wire instructions to send the loan proceeds at funding
Copy of Owners Driver’s Licenses front and back is Amundson
The Form 1919 is an SBA 7(a) Borrower Information Form which is 5 pages in length.
Well, you didn’t think that this was going to be easy did you? Uncle Sam is passing out free money. Did you think that it was going to be as easy as standing in line on the West Side for Government Cheese?
Your tax returns and financial statements have never before been so important. If you are behind on your returns or your financials, and would like to apply for any of these loans, then you need to get your work into us now. They aren’t going to approve any of these loans without the necessary paperwork. Thousands of entrepreneurs are going to get into line for these. If you don’t have what they need, they will just move on to the next applicant.
Get busy. Get your documentation together. Get into line first.
Small Business Resiliency Fund
This provides $100 Million in emergency cash flow to small businesses and non-profits. The maximum loan is $50,000, supposedly low interest, and is structured to work in conjunction with the Payroll Protection Program from The SBA. This is for businesses that have suffered a revenue decrease of at least 25%. It is being administered through their lending partners including Accion Illinois and Indiana, as well as The Community Reinvestment Fund, USA.
I believe this means that your business does not need to actually be inside Chicago, to be a part of this. But here’s the best part.
Since this is basically a credit card loan, the application process is easier.
Please go to the following website
The questions are easy. It took me about 2 minutes. Fill it out and wait to be contacted.
Now there are no guarantees. This looks like an extension of The SBA Microloan Program that I wrote about yesterday. They are probably going to want more paperwork once you get further along. Again, if you are behind, get your work into us know so that you can have the necessary documentation that they will require to process this loan.
But do it now, and get into line.
“Now is the Winter of our Discontent”
As you may have heard, our Governor has extended the stay at home order until the end of April.
This thing just got really serious. That’s a long time for businesses to be shut down.
You have two choices. Only two. You can cry, whine. and have a pity party for one. Or you can adopt a Warrior’s Attitude, and get through this thing.
No one asked for this. No one wanted it. We’re all angry. There isn’t any way that this thing isn’t affecting you.
You need to get through this. You need to do whatever is necessary.
And that all starts with having a Warrior’s Attitude.
If you show your fear, anxiety, doubt, or despair to those around you, what will happen? Your employees will leave. Your customers won’t want to buy from you. You suppliers won’t want to sell to you, and your family will continue to freak out.
You need to screw on that happy face, ensure confidence in those around you, and get it done. You need to be that bright, shining light at the end of the tunnel for all to see. The people around you have never needed you more than they do right now.
In other words, you have to Entrepreneur. You have to Lead.
You may not feel like it. You may not want to do it, but that’s the job. Like it or not, that is what you signed on for. It’s what is required of you right now.
It’s not just a job. It’s an adventure.
You need to shepherd your business through good times and bad, through sickness and health.
And you can do it.
I’ve been talking to a lot of you, and there is a lot of fear out there. Mostly it comes from my younger customers, or customers who haven’t owned businesses for very long. This sort of thing happens from time to time. Anyone who has been in business as long as I have will tell you that you just need to get through it. You need to do whatever is necessary.
So suck it up Marine. Gird your loins. Shoulder your weapon. Stand you post, and get through it.
But know that you are not alone. We will all get through this together.
We stand shoulder to shoulder with you, our Brothers and Sisters.
Accounting Solutions Ltd. stands ready to complete its mission and purpose of protecting you, your family, and your business. If there is anything that you need, or just need someone to talk to, please contact us. I’m here, and remain,
Accounting Solutions Ltd.
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