Since the CARES Act passed, eligible firms have been trying to figure out how to apply for loans through its Paycheck Protection Program. We have collected key tips from some of our firms to help you navigate getting assistance.
Check out these six steps to help ensure you’re on the right track:
- Contact your bank as soon as possible. Ensure they are qualified to support Small Business Association (SBA) loans. If not, ask them for a referral to a bank that can. Stay persistent if you don’t get a referral right away—more SBA lenders are coming on board and it is wise to ask your network who is working with them.
- Review the Small Business Association’s application online and ensure you have the necessary answers. Your bank may have a different application, but at least you’ll be prepared for the required questions.
- Get a list of required documentation from your bank. At a minimum, this will be payroll records (such as Forms 941 or 944, or your 2019 tax return) for each pay period for the preceding 12 months. If your firm offers health insurance plans, you’ll also need proof of paying health insurance premiums.
- Apply quickly. Even though this is a $349B program, funds are available on a first-come, first-serve basis, so time is of the essence.
- Keep good records for the disbursement of the loan. You will need this information to prove that you spent the funds on eligible items for it to be forgiven.
- Recognize that you are not the only one with questions. Many banks have been unable to start taking applications because they need additional clarification from the SBA.
This is an important time for firms to take advantage of available government assistance in order to keep business healthy. We advise you to work directly with your bank and financial partners for guidance regarding government assistance. However, our team is available and ready to respond to the needs of our customers during this challenging time.
If your firm is looking for recommendations around technology solutions, enabling remote work, or enhancing case management efficiency, we are happy to discuss solutions. Please feel free to contact us at any time.