Last week we urged all small businesses and some self-employed (Form 1099) individuals to continue to apply for the CARES Act programs, such as the Paycheck Protection Program (PPP), in preparation that more money could become available. The bill to add additional funds to the CARES Act programs passed the Senate this week, with speculation that it will pass the House on Thursday. The act as it is then expected to be signed by the President.
How Much are We Talking?
If passed, this bill would add $500 billion more in funds to the CARES Act, including, but not limited to, over $360 billion in additional PPP funding, another $10 billion in EIDL funds, and $100 billion for hospitals. Additionally, funds for ancillary health items & testing have been made available. On April 16th, the original $350 billion for the PPP loans ran out, leaving thousands of small businesses confused and frustrated. Some small business still haven’t heard back from their bank institutions at all, leaving some to speculate that they have been approved, but not yet notified.
So What Do I Need to Do Now?
Whether you’ve already filed and are waiting to hear back from your bank, or you haven’t filed just yet, it’s best to make sure your application is complete to ensure you have the best chance at getting these funds. A lot of banks are only working with their current clients, so now is the time to quickly build a relationship with your local branch, possibly your local community bank, to help increase your chances. It’s better to put in the work now in hopes these funds become available, than to scramble after they do. We’ve put together a checklist of documents your bank might request, so gather these before heading to your bank. And don’t forget to bring your completed application. If you believe your application has already been approved or submitted, be sure to call your banker and ask for an update.
What if I Already Received the PPP Loan? How Do I Track the Spending?
Great question! Just because you’ve received the loan, your work doesn’t end there. You’ll need to track the spending and prove you used the funds for its intended purpose which includes mostly payroll expenses. Use our PPP Reconciliation Schedule to perform a bank reconciliation at the end of the 8th week and tie your general ledger account to the bank statement.
What Other Resources are Available?
The Lakeland Chamber of Commerce has put together a robust list, but if you’re feeling overwhelmed by all the options, or are unsure of which programs you qualify for, don’t hesitate to contact us.
We’re Here to Help
The CPS Team is committed to helping everyone during these uncertain times. If you, or someone you know, needs assistance with the PPP loan application process, please reach out to one of our Financial Advisors: email@example.com
Don’t go at this alone. We’re all in this together.
Michael Scott | MBA, CFA
Senior Portfolio Analyst