The Race to the Finish for PPP Loans.
Wow!! What a week!! We are coming down to the wire. BofA has already announced that after March 9, No Mas! They will not be taking any more new applications and all follow-up documentation has to be in by the 22nd.
Today’s Topics – Swipe left and go on to the next email if these topics do not apply to you.
- A big boost for Sole Proprietors
- The ERC and PPP
- Chase Rises
- Do’s and Don’ts of applying for PPP
- A little known secret and a pro-tip from your Uncle Adam
What a difference a week makes! New regulations put out by the new administration on the PPP application process significantly benefitted sole proprietors. Instead of Line 31 on the Sch. C, we are now using Line 7 of the Sch. C which is a significant difference in the amount of the PPP loan a sole prop can get. For those of you already approved, you can’t go back and change it. For those of you not approved, make sure your lender gives you the new amount.
When working on forgiveness, be aware of the impact of that forgiveness on your potential Employee Retention Credit – ERC. Ask your CPA or reach out to Helen Han at R&D Incentives Group to see if they can help. Or call me and I’ll tell you if you qualify. Email works too.
Chase continues to rise as the bank with the most issues. I’m not sure what it is, but you can hear the frustration in the voices of the service reps. Which leads us to the Do’s and Don’ts.
Don’t load up documents for the sake of loading them up. It took me two weeks to sort out a borrower’s PPP request because over 100 documents had been uploaded, many for the third and fourth time.
Do give the lender ONLY what they need.
Do READ THE INSTRUCTIONS before proceeding. Or call me. If you do call me, then you may get the following results…
I worked with a client to apply for their second draw with BofA. We applied Tuesday, it was approved Thursday and they had the funds Monday. We gave them what they needed in the format they wanted. No muss, no fuss.
Did you know… if you applied this year for a first draw and have already spent it, you can apply for a second draw providing you can demonstrate a 25% drop in revenue, quarter over quarter, from 2019 to 2020. Yes, you can, and you are welcome. That’s two for the price of one.
That’s it for this week. 24 more days and the Covid Cash Flow turns into a pumpkin. Make sure you have your fairy godmother helping you on your applications as the focus starts to turn back towards forgiveness.
