SBA PPP Small Business Loans: Second PPP Funding Round for SMBs
Saturday, May 24, 2020:
- Will Your PPP Loan Be Forgiven?: Fifty-four percent of small business owners with a PPP loan expect all of their expenses to be forgiven, NFIB survey results reveal. Also, 27 percent of borrowers expect at least 75% or more of loan expenses to be forgiven.
Thursday, May 21, 2020
- PPP Changes Are Likely: House and Senate lawmakers are preparing new legislation that would make it easier for the government to forgive emergency loans to small businesses impacted by the coronavirus pandemic, The Washington Post reports. The upshot: Small businesses that receive PPP loans may receive extended timeframes to spend the money on payroll — that is, if new legislation gets formalized and approved.
Saturday, May 16, 2020
- PPP Loan Forgiveness Calculation Form: The SBA released this PPP loan forgiveness calculation form and PPP loan forgiveness application on May 15 to help small businesses ensure their loans are forgiven.
Friday, May 15, 2020
- SEC Investigates Some PPP Loans: The Securities and Exchange Commission is conducting a sweep of public companies that have received funds from loans under the Paycheck Protection Program, ThinkAdvisor reports.
- New Deadline for Returning PPP Loans: The SBA has issued a new interim final rule night opening the door for lenders to increase existing PPP loans to partnerships and seasonal employers, the Journal of Accountancy reports. In separate guidance, the SBA extended the safe harbor for returning PPP loans from May 14 to May 18.
Wednesday, May 13, 2020
- PPP-related Taxes to Keep In Mind: An IRS rule published April 30 ensures small businesses that received PPP funding can’t “double dip,” Silicon Valley Business Journal reports. The rule states that small businesses that use PPP dollars toward their payroll and other covered expenses can’t then deduct those amounts from their taxes, potentially offsetting some of the loan’s benefits and resulting in a bigger tax bill for some, the report says.
Tuesday, May 12, 2020
- PPP Loan Forgiveness Guidance: How can you ensure your business properly uses PPP funds — and avoids interest or financial penalties for misuse of funds? Check out this Top 10 list of PPP loan forgiveness tips from Neil Hare, president of Global Vision Communications.
Thursday, May 7, 2020:
- Deadline for Returning PPP Funds: Did your company take a PPP loan, only to discover that perhaps the business doesn’t need the loan — or doesn’t truly qualify for the money? The SBA “Safe Harbor” deadline for returning PPP funds has been extended to May 14, The Journal of Accountancy notes.
- Neediest SMBs Didn’t Get PPP Loans: That’s according to this New York Federal Reserve study.
Wednesday, May 6, 2020
- Wells Fargo Under Investigation: Wells Fargo has received formal and informal inquiries from federal and state agencies regarding its handling of
PPP loans, the Charlotte Observer reports. The probes come after the bank, along with three other major banks, was sued for allegedly shuffling program loans to maximize the bank’s profit, the report notes. The bank denies the allegations.
- PPP Arrests: Prosecutors Allege Fraud: Two New England businessmen have been charged with illegally trying to procure PPP loans totaling $544,000, Milwaukee Journal reports. The defendants claimed to have dozens of employees earning wages at four different entities when, in fact, there were no employees working for any of the businesses, report alleges.
Tuesday, May 5, 2020
- More PPP Transparency?: A group of Senate Democrats want the Small Business Administration to disclose more real-time data on who is getting loans from the agency, arguing that more oversight and transparency are necessary after Congress passed far-reaching aid in response to the coronavirus pandemic. However, Republican Sen. Marco Rubio of Florida, the chairman of the Small Business Committee, objected and effectively blocked the effort. Rubio argued that it could slow down the urgent and important work at the already over-burdened agency. Source: CNN
- Another PPP Lender to Know: Credibly is accepting PPP loan applications here.
Monday, May 4, 2020
- Newly Approved PPP Lender: Biz2Credit, a digital platform and technology company that helps small businesses access capital, is now an approved PPP funding affiliate, the company says.
- PPP Round Two Loan Totals: The SBA and associated lenders have made 2.2 million small business loans worth a combined $175 billion in round two of the PPP program. The average size loan in round two is $79,000. Lump Round One and Round Two together, and the the government has made 3.8 million loans totaling more than $500 billion, CNN reports.
- PPP Loan Investigations: SBA Inspector General Hannibal “Mike” Ware said his office has already initiated dozens of investigations involving complaints of PPP loan fraud, Politico reports.
- PPP Loans Eliminate Tax Breaks: Small business that have PPP loans forgiven will forfeit some tax breaks, according to new rules from the Internal Revenue Service (IRS), PYMNTS.com reports.
Wednesday, April 29, 2020
- Emphasizing Community Banks: To assist community lenders, the SBA from 4pm EDT until midnight only accepted loans from lending institutions with asset sizes of less than $1 billion. In other words, dollars flowed to community banks — which typically serve small local businesses. And yes, community banks can continue to accept loan applications after this one-day, front-of-line promotion expires.
Tuesday, April 28, 2020
- SBA Investigates Large Loans: In order to ensure PPP loans are limited to eligible borrowers, the SBA is now reviewing all loans in excess of $2 million, the organization says. The move comes after several large, publicly held companies received PPP funding. Some of those companies, facing public shaming, have since announced plans to return the money.
Monday, April 27, 2020
- SBA – Second Round PPP Loan Processing: The SBA as of Monday afternoon processed more than 100,000 loan applications from more than 4,000 lenders. The second round of lending began, as expected, at 10:30 a.m. ETD. But many small businesses complained that SBA systems were once again overwhelmed by inbound inquiries.
- SBA System Challenges: The SBA’s computer systems were strained on Monday amid heavy demand for Round Two loans, SBA Administrator Jovita Carranza warned twice via Twitter.
Friday, April 24, 2020
- SBA – Second Round of PPP Funding: The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 a.m. EDT from approved lenders on behalf of any eligible borrower, the SBA says. President Trump and Congress approved this new, second round of PPP funding in recent days.
- PPP Round One Recap: The PPP supported more than 1.66 million small businesses and protected over 30 million jobs, the SBA says.
Thursday, April 23, 2020
- PPP Loan Funding Round Two – House Vote: A House of Representatives vote today approved a relief package that features $310 billion for the small business loan program, $60 billion for the Small Business Administration disaster relief fund, $75 billion for hospitals, and $25 billion for testing, ABC News reports. Assuming President Trump approves the package, the SBA is expected to share details with lenders in late April or early May.
Wednesday, April 22, 2020
- How Best to Secure New PPP Funding: As the federal government prepares to replenish the PPP program, small business owners should go to Square and PayPal right now, and sign up now so that you’re prepared for next round of funding, according to Bloomberg Radio.
- New PPP Funding – Big Companies Still Eligible?: The second round of PPP funding, which faces an expected House vote on April 23, still contains a loophole that allows large companies with fewer than 500 employees per location to receive funding, according to Bloomberg Radio. Republicans and Democrats are blaming each other for the ongoing loophole. House Speaker Nancy Pelosi is expected to be asked about the loophole during a midday interview on April 22.
Read earlier PPP updates by visiting the next page….