PPP/CARES update: April 2
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(Don’t know what the PPP is? Read this first.)
Update @ 4pm Pacific: Looks like SBA released some additional info late this afternoon.
Quick summary: In theory, applications to receive some of the $350b in PPP loans are supposed to be available starting Friday, April 3. In practice, no one seems to actually be ready and we’re skeptical that any applications will be processed tomorrow. (Don’t know what the PPP is? Read this first.)
More detail: Across the board, the earliest we’ve heard from folks on application processing beginning is “early next week”, and one lender told us: “It’s likely that the SBA will need a couple weeks to even give us more clarity on stuff.”
The root of the issue here is that you apply via your lender (e.g. your bank), but the government has yet to give the lenders concrete guidance on what they’ll actually accept in a loan application.
Our concerns are:
- The lenders don’t yet understand the government’s requirements, so they haven’t been able to formulate their own application requirements
- It looks like the government will process these applications first-come-first-serve
- No one knows what order the lenders will process them in
- There’s fear that the funds will run out before everyone who would be eligible has the opportunity to be funded
Many lenders are indicating that they’re going to limit applications to their existing customers until they get this all sorted out, so we recommend you get in touch with your lender to learn more (or to get on their waitlist, if they have one).
If you’re aware of a lender that intends to process applications on Friday (or if you have tips or additional information), please email us firstname.lastname@example.org.
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