There is a lot of anxiety as people sit around and wait for their EIDL and PPP federal small business stimulus. Is my application being processed? Will my bank run out of funding? Where else can I apply?
Every day we learn new details about the PPP and EIDL, so here’s our most up-to-date information:
- Nobody we know has received an EIDL loan yet. The SBA has been completely silent about this program since Monday 3/30/2020 when they released a new application and promised $10k advances to anyone who applied.
- Nobody we know has received a $10k advance from the EIDL application. This money, originally promised within 3 days of application, has yet to appear in anyone’s accounts.
- Most PPP applicants have not been funded. PPP funds just started to hit accounts as early as this Tuesday. To date it seems the regional banks have been fastest to act since they face less regulatory risk than the larger banks.
- Several banks still do not have PPP applications. Most notably is Silicon Valley Bank, who did not have an SBA program established. Most of these banks are scrambling to bring one online ASAP.
- We are not aware of any banks accepting new customer PPP applications. We have heard of a few banks who believe they will begin accepting new customer applications in the coming weeks.
- PPP agents have so far been unable to source loans for clients. Agents like NAV and Kabbage have not made good on their offers to act as agents to originate these loans.
So what should you do for your small business?
- Apply if you can. Even though the EIDL seems stalled out, it doesn’t hurt to put in an application. You can always decide not to follow through once the loan is approved.
- If you can’t apply, keep checking with your bank. Congress is working hard to ensure there is enough funding, so keep checking back with your bank until their application is available.
- Stay tuned to CFOshare. We will announce as soon as we hear of a bank accepting new client PPP applications.
And as always, get in touch with us if you want to talk business. Good luck and stay safe out there!