Have a $2M PPP Loan?
Good news – read on!
We are now in the doldrums of summer where someone is always out of town, on vacation, or both. That said, it has certainly not been a week without news.
RRF is done. All funds have been exhausted
No more 3509 for PPP borrowers of $2 million or more
2020 PPP Borrowers – The End is Near!
Restaurant Revitalization Fund is funded and done. Of the 278,304 RRF applications for $72,233,280,031, a total of 101,004 restaurants were funded to the tune of $28,574,979,472. That’s $28.5 Billion with an average of $282,909 per restaurant with American Samoa having one restaurant secure funding of $23,657, out of the 7 applications that came in from American Samoa for $1.4 million. And the northern Marianna Islands had 12 restaurants secure a total of $1.9 million. Who knew? Just file this away with the other useless stuff you can talk to other people about at a summer barbecue. Speaking of summer barbecue, just about the easiest thing to cook on the grill is tri-tip; 45 minutes total, flip once, and you are done and your guests will be impressed!
Prior to Friday, if you had a PPP loan of $2 million or more, you had to complete an additional “needs analysis” form that would help the SBA determine if your company had “economic uncertainty”. Well, as of Friday, that is off the table and you no longer have to complete it. Good news if you haven’t done the work already and an “Oh well” if you spent the 4 hours getting the information together and writing the narrative. WARNING: The SBA is quick to point out that just because they are not requiring the form, does not mean you will not get audited. Remember, as a borrower of $2MM or more, your file will be audited. That was mandated by Congress late last year. If you’d like to know how to best position your economic uncertainty argument, call me.
Did you get PPP funding in 2020? You need to apply for forgiveness VERY soon if you don’t want to make any payments on your loan. HOWEVER, even if you start making payments, you can still get the full amount forgiven as long as you apply for forgiveness before the loan matures – check your loan documentation for your loan maturity date. Use the following payment deferment expiration table below as a guideline; only twinkies have longer expiration dates!
Funding Date Best if Forgiven by:
4/15/2020 7/26/2021
5/1/2020 8/11/2021
5/15/2020 8/25/2021
6/1/2020 9/11/2021
6/15/2020 9/25/2021
7/1/2020 10/11/2021
7/15/2020 10/25/2021
That’s it for this week. Air travel is up and so are delays, so go for a mask-free roadtrip and enjoy the summer!
