If your business did not receive any money from the first round of Paycheck Protection Program (PPP) funding, the Senate just approved another $484 billion dollars for U.S. businesses and hospitals. The first round of funding ran out of money, and I have no doubt this next round will not be open very long until it runs out of money. Here are some suggestions about what you can do now to best position yourself:
(a) Confirm with your lender that your application was received and is in line for approval and funding. Are there any corrections that need to be made to your calculations? Did you initial all relevant boxes in the application? Make the necessary calls to the lender and make their job easier by quickly correcting any filing deficiencies.
(b) If you are not getting a comfort level from your from your current lender, consider applying elsewhere. While most lenders prioritize existing customers, some will consider new borrowers as well. All lenders offer the same rates and terms for these PPP loans, your job is to find a lender that can approve and fund while there is money available. You can only receive one loan, but you are not prohibited from applying with different lenders.
(c) If you do receive a PPP loan, remember that at least 75% of the loan is intended to cover payroll and related expenses. You need to keep accurate records after loan funding so that the lender can determine how much of your loan is forgiven and how much will still be owed and paid back.
The bottom line is you need to move quickly to secure your place in the next round of PPP funding. Make sure your pending application is accurate and complete; consider applying with another lender if your current lender is not responsive.