I have talked to a few bankers regarding the new PPP loans and it doesn’t appear they are going to be ready to issue funding until the new year. The stimulus plan was signed into law, but now the SBA needs to provide guidance to the banks on how to proceed.
However, be sure to keep an eye out for email updates from your bank (and be in close communication with your particular banker)- this second round will have some stipulations that we still need clarified. For example, borrows must demonstrate a 25% revenue decline in a 2020 quarter vs 2019, but Q4 may not be eligible (which could be very important for some clients)- these are the details we need confirmed.
Borrowers will also receive 2.5x their monthly payroll costs, but we need to get confirmation of what dates will be incorporated in this calculation.
The bill also made official the long-rumored simplified forgiveness application for loans under $150k so keep an eye out for your portals to be updated with this form.
As always, I’ll be in touch as I start to see a pickup in bank communication, but please let me know if you have any questions in the meantime.