I’m always so grateful to have participated in the Goldman Sachs 10,000 Small Businesses program – never more so than the last month. In addition to all of the knowledge I gained when I was in the program, they have been providing us access to up to the minute information regarding programs for small businesses. I just got off of a webcast with Senators Rubio and Cardin about the Payroll Protection Loans. I’m not going to go into in-depth information, but I did want to share a few key takeaways. As always, if you have questions, contact me through the contact form.
- SBA should have things squared away to start the loan program by 4/3, if not sooner.
- Apply through a bank you have an existing relationship with, if possible, as they will already have a lot of the information needed to ascertain if you qualify for the program.
- The qualifications are easy – don’t be afraid that you’re not going to qualify or that you’re going to have to jump through a bunch of hoops. Basically, if you are a legitimate business, you’ll qualify. The federal government is just using the banks to process the paperwork – there is no risk (and therefore no underwriting) for the “lending” institutions.
- Most of these “loans” can be forgiven, and that forgiven amount does NOT count as taxable loan forgiveness income. (Not an accountant, but that was my takeaway.)
- If this doesn’t get better in the next couple of months, expect another round of funding.
- There are 4 primary funding options right now. I think this explains most of them. Also check out sba.gov for more information.
Those are the primary things that stood out to me. There are a lot of articles online with a lot more details than I’ve provided here about the nuts and bolts. Here are a few:
Summary of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (about halfway down the page)