The U.S. Small Business Administration announced on April 16 that applications are now closed for the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan Emergency Advance (EIDL)—both loans made available as part of the CARES Act.
Only three days earlier, on April 13, it had announced that nearly $248 billion of the $350 billion appropriated for the PPP loans had been approved for more than 1 million small-business loans.
As G&A reported in the past, these loans were in high demand and lenders were overwhelmed with applications. Not surprisingly, after 13 days on the market, federal funds for the first-come, first-served loans—which have the potential to be converted into tax-free grants if specific conditions are met—are now gone. Luckily, several G&A clients have already applied and been approved for these loans.
Matt Sorensen, CEO and Attorney at Directed IRA & Directed Trust Co, recently published an article on Entrepreneur.com reporting that while some small business owners have received their PPP funds, a vast majority are still looking for a bank, are in the process of applying, or are still evaluating their options.
Forbes published an article on April 14 letting small businesses know that borrowers may now apply directly at PayPal and other financial technology entities such as Quicken Loans for the PPP loan. That likely sped up the process.
G&A has worked closely with our legal partners and the National Association of Professional Employer Organizations (NAPEO) to bring our clients the latest news and resources to assist them with the loan process.
Some financial resources are still available to small businesses suffering from the effects of the pandemic. The SBA has created a guide exploring coronavirus relief options.
Clients can contact their G&A Client Advocate or HR Advisor for further assistance. If you are an employer considering hiring an HR partner to help you navigate new legislation and would like to learn more about G&A Partners, call 1-866-927-6203 or visit us on the web.