7 Tips to Get Your PPP Loan Application Approved Faster
DISCLAIMER This video is intended for education purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
The U.S. Small Business Administration (SBA) announced changes Wednesday designed to reduce delays in the Paycheck Protection Program (PPP) approval process.
Millions of small businesses have applied for PPP forgivable loans since it reopened Jan. 11 with $284 billion in fresh funding. A significant percentage of those applications has been held up by process and system issues stemming from additional validation checks put in place to flag potential fraudulent applicants.
The AICPA sent a letter Feb. 3 urging the SBA to address the problems, which were causing the SBA’s E-Tran and PPP Loan Processing system to either reject or require more documentation for around 30% of PPP applications.
Often the system didn’t allow lenders to submit the documentation or directly address other errors, such as data mismatches, that were preventing otherwise acceptable applications from being approved. The AICPA also called on the SBA to provide more frequent and clear communications to lenders and small businesses about the PPP issues.
To address the concerns raised about the PPP process, the SBA said it would allow lenders to directly certify the eligibility of borrowers for first- and second-draw loans and would not require lenders to submit supporting documentation of borrowers with validation errors until they apply for loan forgiveness. The changes are designed to speed up the flow of funds to PPP applicants while “maintaining the integrity” of the program, according to the SBA.
The SBA also said it would create additional communication channels with lenders, including an immediate call with national lenders to brief them on the PPP platform’s added capabilities.
How much the SBA changes will smooth out the application process will be revealed as the platform tweaks are implemented with lenders. Accounting firms with small business clients whose applications are on hold may want to continue to preach patience as the SBA works to improve its platform and procedures.
Despite the system and process issues, the SBA approved almost 1.3 million PPP loans totaling $101 billion from Jan. 11 through Feb. 7. The program is scheduled to continue accepting applications through March 31. #ppploanapplication #ppp #ppploan #ppp1 #ppp2
Hello from FreedomTax Accounting, we are an accounting firm where we have been providing quality tax and accounting services now for over 20 years, we wanted to do this quick video to share seven strategies that we are using with our accounting clients that we have seen that gets them the PPP loan approved faster. So that’s what we’re going to talk about in this video.
Now, this video is being recorded on February 16th and we always emphasize the date of the recording on any video relating to the PPP loan, because this program is constantly changing. So, there may be things we discuss in this video that can change as soon as tomorrow. So that’s the importance of subscribing to our channel. That way, you’re always up to date with the most current and correct information regarding these PPP loans. One of the things we wanted to mention is that nobody can say that they are a PPP expert. Remember, this is a brand-new program that was approved and started April of 2020 of last year and this is new for everyone.
Now we can say that for the last 10 months our firm has been working hard to help our clients and help small businesses get these loans. And for the last couple of months, we have been we have processed hundreds and hundreds of PPP loan applications and forgiveness forms. So, we wanted to share the seven things or strategies or tips that we use with our clients that we have seen that has helped us get the PPP loan approved faster for our clients, okay.
- Now, first of all, the SBA has said that this second round of PPP loans has had some issues, apparently the PPP loan application in the second round are the applications are taking longer than expected. And that applies for first draw PPP loans and second draw PPP loans. SBA has said that it has been having communication issues with the lenders and that their system was having issues almost denying some applications that should not have been denied that VA did say that those issues are getting fixed and that moving forward, the PPP loan process should be faster. Now one of the things they did say is that apparently the system denied some applications that should not have been denied.
- So, if you have applied for a PPP loan recently and got denied with the lender, we recommend that you apply again just in case you fall under one of those cases Okay. Now the first step to getting your PPP loan approved faster is to use the same bank that you have your business bank account with y we have seen that the process is faster and easier. Remember that the if you use the bank that has your business account for the PPP loan, the bank has most of your information already. For example, they already have your bank account number, your routing number, the bank statements, your EI number, your business address, your business name, and all that information is already confirmed with your bank. So, we have seen that the PPP loan application process is faster if you use the same bank that you have your business account with. Now this is not mandatory, you can use another lender if you want.
- Tip number two for getting PPP approved faster is if your bank does is not providing PPP loans, you may use a small local bank, we have had a lot of success with our clients using smaller local banks and smaller local credit unions. We have seen that usually PPP applications are processed faster, and especially they have made the PPP forgiveness process a lot easier. Unfortunately, the bigger banks the PPP forgiveness process, they have made it a lot more complicated that they should have. So, I hope they fix those issues in the future.
- Now, tip number three for getting your PPP approved faster is sending high quality documents and images. Remember that through the PPP application portal no matter which bank or cabbage or blueline, or Bank of America or any bank, you’re going to have to send in your tax returns your schedule C payroll documents, bank statements, make sure that these documents are in good quality PDF formats. avoid taking pictures with your phone and sending a picture of the document to the PPP portal, we have seen that in most cases that you send a bad quality picture of the documents. In most cases, that lender is going to come back and say we will not accept this document, please send it in a better image quality and that’s basically the lane, your PPP long application process. Also, if you’re going to if you have to send in an image of your driver’s license, the image of the Void check, make sure it’s a high-quality JPEG color image, right? If not, this can delay your PPP application process.
- Tip number four for getting your PPP loan approved faster is to make sure that you send complete documents for example, there are some lenders that require that you upload the complete personal tax return. So, make sure that you upload your personal tax return with all the pages and all the forms. If you just send a few pages of your personal tax return your PPAP loan might be rejected. Same with the monthly bank statements. The bank statements when you download them in PDF, on the corner, even in the top or in the bottom is does say page one of six or it says page two of four. So, make sure that you send the complete monthly bank statement with all the pages.
- Tip number five is double check the information you’re providing to the lender for accuracy. Check for spelling errors, and especially number errors. We have seen that if you make a spelling mistake, or you put in the wrong numbers, you may get your PPP loan application denied. So double check everything you put in the application. And we have found two tricks. One of them is when the lender asked for your business address, make sure that the business address you put on the PPP loan application is the same address as your tax return business tax return or your schedule C. And when the lender asked for the address for the owner, it helps that is the same address that’s on the driver’s license.
- Now Tip number six is once you have completed the PPP application, login to the lender portal periodically. Once you finish the PPP loan application, let’s say through blueline, or cabbage, or PayPal or a bank, don’t wait for them to send you an email to do something. We usually log in every day once we finish the application because we have seen cases where our client has not received an email from the lender. And the lender is already telling them you need to upload more documents. And we’ve even seen cases where the lender has already approved the PPP loan and they’re just waiting for you to sign the final documents. So, don’t wait for them for them to email you. Once you complete the PPP loan application, login periodically to the to the portal to make sure that you don’t have to do anything.
- Now the final tip, and this is really what has helped our clients a lot is that you can apply with more than one lender, you don’t have to apply for PPP with only one lender. This increases your chances of getting your PPP loan approved. Now, the lender that gets you approved first, then that’s the lender that gets your business. Now if you use this strategy, as soon as you get your PPP loan approved with one lender, make sure to cancel the other pending PPP loan applications because you cannot have two PPP loans approved.
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