Overwhelming Chaos

If you have been anywhere except under a rock this week you have heard all about PPP loans and SBA grants. Free money for all! It sounds too good to be true, but if you play your cards right you can actually secure funding for your business that is eligible for forgiveness and any remaining amount financed at a very low rate.

Do you qualify for everything and just have to contact your bank to apply? I would love to be able to say yes, but this is a government program, so my answer must be “it depends.” Due to the overwhelming chaos that we are all experiencing, I have a few things that I would encourage you to consider before calling the bank.

Learn the Rules!

If the government is offering forgiveness, be prepared to fight it out. Document everything! I would suggest putting the money into a separate bank account. This would allow you to provide the bank a full accounting of every dollar spent.

Work Backwards!

Take a look at your entire financial picture and the possible outlook over the next few months. Some of the programs have a time limit to spend the money to gain forgiveness.

Don’t Rush In!

Yes, it is being reported that the programs are first come first serve and they will run out of money. However, Treasury Secretary Mnuchin has also said that he will be asking Congress for more money to keep the program funded.

I Need Money Now!

The scariest thing to a self-employed person is the thought that there is no money coming in. Most vendors, lenders, and landlords have the ability to defer payments for a short time. There are provisions in the new statute that allow for an advance of $10,000 on an Emergency Disaster Loan through the SBA. These funds can be made available within a few days.

Find Someone You Can Trust!

Whether it is your banker, accountant, financial advisor, or tax preparer; find someone you can team up with to help you work through your needs and options. No two scenarios are going to be the same. Some businesses simply don’t qualify for some programs and could waste time applying and getting denied for a loan.

Amy’s Two-Cents

Timing is everything with these programs. Even though it is being reported that there is a filing deadline for the Paycheck Protection Program, the program is actually available through June 30, 2020. Slow down and consider your needs and financial position. By sharing this information, I am hoping to help small business owners and self-employed individuals avoid ending up in a worse financial situation when this is all over.  

It may be cheesy, but it is true; we are all in this together. My success depends on your success. Reach out with questions or concerns. I am here to help!

Stay Safe out there ~Amy

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