Wednesday, January 20, 2021

What we know about the Paycheck Protection Program

We are getting A LOT of questions about the PPP (Paycheck Protection Program), many of which we have been unable to answer, primarily because there has been no “official” guidance released by Treasury.
Here’s what we know and don’t know as of 10 a.m. today:
• The information released by the Treasury so far is NOT the final guidance. The details from Treasury may be changed before the program actually kicks off on Friday.
• There is or has been a disconnect between our expectations (4%/10 years vs. 0.50%/2 years;
• It remains unclear as to how the money will flow; and
• Everything remains fluid and literally changing hour by hour.
• The PPP and the new SBA 7(a) are the same programs. There has been some confusion that there may be two programs designed to flow through the banks. There is only one such program – the PPP.
• We have previously sent out the information you need to get your bank into the lending program, which is to officially kick off Friday. If you didn’t receive it, let us know and we’re happy to resend it.
• We have spoken to the SBA District office, and they are working on processing these applications by banks to become SBA-qualified just as fast as they can. Until the SBA advises you that you are in as an approved SBA lender, there is no way to check.
• There are more unknowns than knowns until the official guidance is released (supposedly sometime today) and reviewed. Right now, we don’t even know how the applications will be conveyed to the SBA, let alone what the details about how the process (mechanics) are supposed to work.
• We do know that banks are going to be required to front the money for the first eight weeks. That’s when the “forgiveness” kicks in, and that’s when banks are supposed to get paid.
• Everything you may be hearing is speculation.
• We don’t know if banks can apply for loans.
• We don’t know if churches can apply for loans.
• We don’t know if you can make a loan for your director’s small business or if he/she has to apply through another bank.
• We are doing our best to find out.
Keep sending your questions. Even if we don’t know the answer now. We will continue to seek the answer!