I want to keep you as up to date as possible on the SBA PPP loan program, so I am forwarding an email I received early this morning (below). There is a lot of conflicting information flying around right now, and my goal is to keep you as informed as I can and help you through the process. We are still in a holding pattern on the PPP loan until final issues and guidance has been worked out between the SBA and the lenders. Having said that, if you are concerned about getting in the queue, I do have an option available for that. I don’t think much will be happening with that until things get finalized and I wouldn’t be surprised if there are still some changes coming. Please follow this link if you are interested Apply for SBA_PPP
If your business is in a position that you simply can’t wait, another option would be the SBA Disaster Loan. Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application. This loan advance will not have to be repaid. You will need to apply for this directly with the SBA.
Summary of Options:
- SBA Payroll based Stimulus with possible forgiveness: Apply for SBA_PPP
- Economic Injury Disaster Loan advance of up to $10,000
- Private loans – fast option
- SBA Loans – slow options
Scott Hanson
President
Prime Start Capital
800-319-5036
Prime Start Capital | 876 Village Brook Court Ballwin, MO 63021
From: Scott D – Executive Director of the NACLB
Sent: Monday, April 6, 2020 4:01 AM
To: [email protected]
Subject: Current Status of PPP Program Nation Wide
| Brought to you by the NACLB |
| The Largest Gathering for Commercial Loan Brokers and Lenders Hello Scott, We are receiving emails from our graduates and other brokers indicating there is a lot of press about the number of loans successfully processed. As of now, we are told by our lenders that they don’t know one business that has actually seen the money deposited into an account. The SBA did send an email to lenders on Saturday the 4th indicating the SBA was working on technical issues, including the crash of the online system CAFS, which is the wider on-line portal that e-trans is a part of. The amount of volume has overwhelmed the system. The CAFS system usually processes approx. 60,000 loans per year, which is a drop in the bucket compared to the volume expected and received based on Fridays activity. The other challenge that may be worth mentioning is the lack of guidance from the SBA as to what qualifies as a complete documentation package . As we understand it, the SBA still needs to provide more concrete information to lenders as it relates to the “buyback” provisions. The buyback of these PPP loans is a major issue for lenders, as they have no interest in maintaining 1% interest loans on the books for a business that currently has no revenue (and/or is closed), including an application without a credit report, no collateral or a personal guarantee. I tried to apply myself at Celtic, Chase, Key, Wells and B of A and was either directed to a registration page or told I didn’t qualify (only actual reply was B of A). The banks are trying to do a smaller number of loans initially to see if the process is working or not. There is a ton of misinformation out there and the real truth about this process hasn’t hit main street yet. We are staying in touch with our SBA lenders but at the moment our lenders are not taking apps right now and awaiting further information from the SBA. All of these stresses occurring at the same time created chaos. The issues noted above are short-term and will be resolved, but it will take time. I would expect to see some stabilization in the coming days to perhaps as much as a week. Scott Diberardinis / Executive Director National Alliance of Commercial Loan Brokers(585) 455-298590 State Street, Suite 1500, Albany, NY 12207www.naclb.org |
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