PPP Update - Benetrends Financial
The information below was provided by Benetrends financial CDO - Eric Schechterman on April 7, 2020.
Undoubtedly, you are being inundated with news on the PPP, and it seems that changes are occurring faster than we can put pen to paper. I want to share what we know to be true, and the direction of some of the guidelines that have yet to be finalized. PPP hot topics we know as of 4/7/20…
PPP loans are now being processed by SBA in higher volume. Many Banks are currently only assisting with their existing clients
100% forgiveness of the loan can be obtained if the loan’s proceeds are utilized as intended (i.e., payroll, rent, utilities) and documentation can be produced to validate the expenditures
Loan Term is still 2 years / Interest Rate is still 1.0%
The first 6 months of payments are made by the SBA
When calculating the average monthly payroll expense, the applicant can use calendar year 2019 data OR previous 12 months
Those applying should do so with the bank that they already have a loan with OR a business banking relationship with. If those do not exist or you hit a wall there, I encourage you to take advantage of our BoeFly process.
Our PPP partner, BoeFly, is accepting information to process applications and has already begun to place loans.
Benetrends/Boefly Resource Page
Benetrends/Boefly SBA PPP Application Secure Portal
PPP topics still to be determined…
Exact documentation needed in addition to the SBA application. We have seen different bank websites ask for different information.
How quickly an application can be processed
This is dependent upon each bank’s process
Some do it in large batches
Others do them one at a time
Additional Valuable Information… The CARES Act is not just making an impact through the EIDL or the PPP loans, it is making an impact through debt relief
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
We will continue to provide you with updates.
Eric Schechterman - Chief Development Officer / Benetrends
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