PPP News – Is PPP Really Out of Funding Money? Is PPP Still Available? Is PPP Over?
Latest update on the PPP loan program. Is the PPP really out of funding and can you still apply for the PPP loan, or is the PPP loan program out of money and over?
SBA Restaurant Revitalization Fund
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Is the PPP really over? The answer to that question is yes and no. So, that’s what we’re going to talk about in this video. Hello from Freedom Tax Accounting, we’re an accounting firm where we have been providing quality tax and accounting services for now. For over 20 years we wanted to do this quick update on the PPP program because if you have been following the rules this week the SBA confirmed that the PPP program is out of funds, but it is out of funds for most lenders. There are other lenders that are still processing PPP applications and we just wanted to bring this quick update on what lenders have funding, even if you have submitted an application, you may still get funded and what happens if you don’t get funded. So, all that we’re going to discuss in this video is okay.
So, let’s start. So, basically the truth is that yes PPP funds are over for most lenders. There are still lenders out there called the community development financial institutions. So, if you have not applied for a PPP loan yet then this is the type of financial institution that you need to look for okay. Now we recommend that you do a google search for a community development financial institution in your city for example, in our case, it would be a community development financial institution in Orlando Florida. And look for one of these they call the CDFIs. See if one of them is near your location, call them up, and find out if you can apply for the PPP loan program through them.
Now if you’ve already submitted a PPP application with a lender then you may not have to look for one of these financial institutions, but to discuss that we need to know how the PPP application process works okay. So, you first fill out an application with the lender either, Bluevine, Wompley, Bank of America chase any lender, you apply with the lender the lend and that’s when you send them your schedule c your tax returns, your bank account, your bank statements, the copy of your driver’s license and you provide all that information and documentation to the lender. The lender reviews your documentation and they send you, the lender sends you a PPP application form for your signature okay.
What does that PPP application form look like? It is this document okay the bank, each lender may have a different version of this but this is the official SBA PPP loan application that you need to fill out to apply for the PPP. So, most banks fill this out for you with the information you have provided and then they send you this document via DocuSign, so you can sign it okay. So, once you sign the PPP application the lender sends your signed application to the SBA. Now the SBA reviews your application, it gives it an SBA approval, it gives you an SBA loan number all right. So, once the SBA takes your application, approves it and gives your case an SBA loan number, the SBA sends the lender this PPP loan is approved for this amount and this is the loan number and the SBA sends the lender what is called a note. So, then the lender sends you the SBA note so you can sign it.
What does the SBA note look like? The SBA note looks like this okay. And once again, each back may have a little different version, but basically, it’s a document that says note where here you can see that the SBA has already approved an SBA loan number. You will see your loan amount that has already been approved. You can see the lender or the bank that is going to give you the funds and basically the lender sends you this document so you can sign it. Once you sign your SBA note, basically the lender just needs to confirm your bank account and send you the funds okay. So, that’s the PPP, PPP1 or PPP2 is the same process for both.
Now once again, and this is our speculation if you are in this stage where your lender has sent the SBA your signed PPP application, we feel that you may still get funded because that’s being said there that it is still processing applications and remember, they have a lot of applications on hold they have a lot of applications that they are denying because of fraud. So, if they have your application, they may continue to process it okay but we’re not sure.
Now we are pretty sure that if the lender has already sent you the SBA note for your signature that means the SBA already approved your funds, and now you just have to wait for your bank to provide the funds. And in most cases, we have seen that the banks are trying to confirm your bank information in order to deposit the funds okay. So, if you have already submitted an application with the bank and you don’t know where your process is you make contact with that lender and see where you are at in this process okay. So, you may not have to look for one of these community development financial institutions if you have already signed your PPP application, or if you already signed your SBA note because you may get funded because the SBA is still processing those applications. The SBA is not accepting new applications okay from most lenders okay.
Now, what happens if you do not get the funds? What happens if for some reason you’re out, you’re in a very early stage in your PPP application fund process and really you can’t find one of the lenders that has uh funding available there are still other funding options. Now the SBA EIDL loan program is still running and it is accepting new applications until 12/21/21. So, if you have not applied for the SBA EIDL loan, you can apply for it until the end of the year. If you already have applied for the SBA EIDL loan program, and you got the EIDL loan in 2020 and early 2021, the SBA is providing a way so you can increase your EIDL loan and you do it through your SBA EIDL loan portal okay. Which is this link okay.
If you got an EID loan in the past, you have an SBA portal, so you have to have a username and a password. If you did not fill out the EIDL loan application for your business, talk to the person who filled it out for you because they have a username and password for your business to enter the SBA portal okay. Now we are going to provide a link to this SBA portal in the description of this video, so you can just log in and see if you can apply for the EIDL loan increase; it’s a very simple process okay.
Now if you are an owner of a restaurant the SBA has a new program called the SBA restaurant revitalization fund okay, which is this program right here. And once again, you have to go to the SBA website of the program. We are going to provide a link in the description of this video. You register for the program; you fill out the application and you may get additional funds for your restaurant okay. The good thing about this restaurant fund is that if you use it correctly, you don’t have to pay those funds back. So, it’s basically a grant that the SBA has for restaurants okay. So, you have other funding options. Also, you can look for local financial help for small businesses. There are local small businesses grants okay. Now you do have to find them so you can do a Google search. For example, you can google, small business financial help in your city. For example, small business financial help in Orlando Florida or business grants in Miami Florida or help for small businesses in Houston Texas, wherever you live. But do a google search because there are local grants available.
Now another good resource is your local chamber of commerce so go to your local chamber of commerce because they have a lot of information on financial help available for small businesses in their community okay.
So, once again, this is our contact information. We are still providing consultations if you have questions about the EIDL loan if you have questions about the PPP if you have questions about the restaurant fund, we are providing consultations. Also remember that we are a full-service accounting firm, if you need help with your personal taxes your business taxes if you need to open up an LLC, if you need to open up a corporation if you have any type of tax issues or problems with the IRS, we can provide help and this is our contact information.
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