PPP Loan and COVID 19
UPDATE: 7 PM on Thursday night the Treasury Department issued additional guidance on the Paycheck Protection Program (PPP) loans.
This simplified many steps to streamline the filing process. Please note, even with this new process, your bank may not be ready until next week. Please take read the details below.
The number one question everyone is asking – when do I apply?
There are two factors to consider:
- 1) When do you need the money?
- 2) When will the funds run out?
Probably not today as banks are unlikely to be ready. Ideally, you want to obtain a PPP loan when you reopen your practice, but no later than 6/30/20. This would allow for you to fund the first 8 weeks of payroll costs (defined below), rent, and utility costs while Practice revenue is less than 100%. This would allow you to be fully staffed and operational once it is recommended for you to reopen. Unfortunately, we don’t know right now if the funds will be available at that time or how long the loan process will take. The Treasury Secretary said he will work to replenish the funds if they run out, subject to Congressional approval.
We don’t believe the funds will run out immediately, but we also don’t believe a business should wait until May to get a loan.
Don’t panic – even if your bank gave you a large list of items yesterday, the list might be significantly shorter today or Monday after they update their procedures. Contact your lender, gather your information, and work with your bank to figure out when and how the financing will be available. Most banks will have an online application but may need a few days to go live with the website. Nothing official, but we have heard from some banks that they will be able to allow for the loan application to be processed and later have the funds become available upon request (prior to 6/30).