When it comes to the Paycheck Protection Program forgiveness is going to be the hardest part…
I was proud to see that my own bank, Valley National Bank, was quoted in this article. Valley National has been amazingly responsive when it comes to working through all aspects of the critical Paycheck Protection Program.
Paycheck Protection Program: Forgiveness Will Be The Hardest Part
Getting a loan under the Paycheck Protection Program may take a significant effort, but the real work begins AFTER the loan is funded. Why? Because it’s crucial that you ensure strict compliance with the regulations that govern PPP IF you want to take advantage of the forgiveness aspects of that loan.
What Should You Know About The Forgiveness Aspects of the PPP?
To take advantage of the forgiveness aspects of your PPP loan, so many critical things need to happen. There are more than a few suggestions out there to help you to do that, but one of the most important, essential, and common sense suggestions I’ve heard to date came from my bank themselves – open up a bank account specific and exclusive to PPP-related expenses. Having a PPP-exclusive bank account ensures that when it comes time to apply for forgiveness on your loan, all of your records are right there in one place.
This kind of advice is exactly the kind of personal and thoughtful attention that we all need to get from a local bank!
Contact WeidnerLaw for our Paycheck Protection Program Checklist…or Chat With us LIVE
The PP Program Stats
As of Monday, April 13th, 52,021 Paycheck Protection Program loans worth more than $12.6 billion have been approved for Florida-based small businesses, according to U.S. Small Business Administration data obtained by Tampa Bay Business Journal sister-paper Boston Business Journal.
Lenders around the country began accepting applications for the PPP on April 3, and local banks and credit unions have been working around the clock to provide loans to small businesses ever since. Over the past few days, those funds have begun to reach the bank accounts of businesses in Tampa and these businesses hope with all hope that they will be able to keep the doors open, keep employees in work, and be able to meet the forgiveness requirements when it comes time.
“I’ve been around [Small Business Administration] lending for over 20 years, and I’ve seen a number of different relief programs from disasters to 9/11 or the recession in 2008, but I’ve seen nothing like this,” Chris Kneer, who runs the SBA lending program for Valley National Bank (NASDAQ: VLY), previously told TBBJ.
An unprecedented program, the Paycheck Protection Program promises hope to small businesses everywhere, but we have to wonder what the longterm ramifications of this program are going to be when it comes to forgiveness. How many businesses will have taken the necessary precautions to ensure that they qualify for forgiveness? It’s something to think about now before it’s too late.