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Message
re: SBA and PPP
Posted on 4/2/20 at 9:44 pm to Hermit Crab
Posted on 4/2/20 at 9:44 pm to Hermit Crab
quote:
Just heard the interest rate is being increased to 1%. Probably to keep some of the bigger banks that had been rumored to be backing out happy
1%. 100%.
Does not matter. Almost every loan will be forgiven along with interest, unless the loan proceeds are misused.
Banks will make some money on the processing fee and helping their customers out.
This is more about getting money to business as fast as they can with some moderate oversight. Banks just have one of the better networks to get the job done.
0
Posted on 4/2/20 at 9:44 pm to BamaAlum02
(no message)
Posted on 4/2/20 at 9:45 pm to mastersoftext
I'm a CPA and not a banker but we are hearing they won't last the weekend. There is talk about allocating more funds to the program.
FYI, I'm still at work and we are trying to get them all completed for our A clients so they can submit first thing in the morning.
FYI, I'm still at work and we are trying to get them all completed for our A clients so they can submit first thing in the morning.
This post was edited on 4/2/20 at 9:46 pm
Posted on 4/2/20 at 9:48 pm to BamaAlum02
quote:
FYI, I'm still at work and we are trying to get them all completed for our A clients so they can submit first thing in the morning.
For the number of employees on the application is this just full time employees, or all employees that make up the 2019 payroll amount?
Posted on 4/2/20 at 10:01 pm to CajunInFL
Just to let you know, EVERY bank and credit union in the United States is authorized to make these SBA loans. If your financial institution chooses not to, that’s on them.
Posted on 4/2/20 at 10:04 pm to Hermit Crab
quote:
Banks are going to be losing money for each one of these they do so there is no incentive for them to reach out beyond their current customers unless they think they can bring in a prospect by helping them out.
This is true. Also, if a business misreports information to us, we can be held liable in certain aspects to the feds. It’s not worth venturing out too far beyond our current customers whom we know and know well.
Posted on 4/2/20 at 10:05 pm to BamaAlum02
Any insight how you are handling the agent fee issue?
I noticed the final application posted on treasury.gov doesn't require the applicant to list if an agent helped with preparing the application.
However, the lender's electronic data form requires the lender to list of an agent helped the applicant.
LINK
I'm assuming that the bank will have an additional form for the applicant to list if an agent helped prepare the form. Then again, why would the bank make it easy for the applicant/agent to list that an agent helped prepare the form if it cuts into the bank's fee?
I noticed the final application posted on treasury.gov doesn't require the applicant to list if an agent helped with preparing the application.
However, the lender's electronic data form requires the lender to list of an agent helped the applicant.
LINK
I'm assuming that the bank will have an additional form for the applicant to list if an agent helped prepare the form. Then again, why would the bank make it easy for the applicant/agent to list that an agent helped prepare the form if it cuts into the bank's fee?
Posted on 4/2/20 at 10:30 pm to pwejr88
quote:
Banks are going to be losing money for each one of these they do so there is no incentive for them to reach out beyond their current customers unless they think they can bring in a prospect by helping them out.
This is true. Also, if a business misreports information to us, we can be held liable in certain aspects to the feds. It’s not worth venturing out too far beyond our current customers whom we know and know well.
This is not true, they will be making billions and an indirect bank bailout. They will make $17,500 for 350k loan
Posted on 4/2/20 at 10:32 pm to McNeeseLSU
quote:
For the number of employees on the application is this just full time employees, or all employees that make up the 2019 payroll amount?
On the application it is headcount. They are using this to determine if under 500. Doesn't matter if temp, part time or full time...if they got a W2 they are counted.
For the forgiveness calculation it will be FTE's.
Glad they made it so simple.
Posted on 4/2/20 at 10:37 pm to mastersoftext
We are engaging with our clients as an agent and filling out agent forms. If the bank has one we are using theirs and if they don't we have created one to use.
AICPA has sent out guidelines stating agent fees does not impair independence and is acceptable as long as it is within the SBA fee schedule.
We've had one bank push back and say they weren't taking on agents. They instructed our clients to pay us at an hourly rate because they didn't want to incur the costs associated with taking on an agent. Our clients had the documentation stating CPA's are approved agents and should be paid from the origination and the bank was blasted by the clients. They will either reverse or lose clients over it. All of my clients I talked to said if they won't pay as agent to bill for the prep time and introduce them to another bank.
AICPA has sent out guidelines stating agent fees does not impair independence and is acceptable as long as it is within the SBA fee schedule.
We've had one bank push back and say they weren't taking on agents. They instructed our clients to pay us at an hourly rate because they didn't want to incur the costs associated with taking on an agent. Our clients had the documentation stating CPA's are approved agents and should be paid from the origination and the bank was blasted by the clients. They will either reverse or lose clients over it. All of my clients I talked to said if they won't pay as agent to bill for the prep time and introduce them to another bank.
Posted on 4/2/20 at 10:44 pm to pwejr88
Yeah. The big banks basically saying frick off. Pathetic
Posted on 4/3/20 at 6:43 am to BamaAlum02
HA! Just got this email from Intuit
So Intuit is going to partner with a lender to auto submit these apps with Intuit as the agent. I see this going well. Especially with small bizs that don’t accrue ER cost of health insurance within QBO payroll. Even more so with the SE apps.
quote:
Important update on the Paycheck Protection Program We're committed to providing the relief you and your clients need. We're working as quickly as possible to launch a simple application and funding process for the Paycheck Protection Program directly within QuickBooks Online. This program is unique—these loans may not have to be repaid if certain eligibility requirements are met. The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which consists of $349 billion in government-backed loans to help small businesses maintain their payrolls through June 30, 2020. Be on the lookout for more information about this program in the coming days.
So Intuit is going to partner with a lender to auto submit these apps with Intuit as the agent. I see this going well. Especially with small bizs that don’t accrue ER cost of health insurance within QBO payroll. Even more so with the SE apps.
Posted on 4/3/20 at 7:07 am to BamaAlum02
So you had the sign a separate engagement letter as an agent? Are you having clients
send in their documents with that engagement letter to show proof you were engaged as an agent? I haven’t seen any agent forms.
send in their documents with that engagement letter to show proof you were engaged as an agent? I haven’t seen any agent forms.
Posted on 4/3/20 at 7:46 am to Nappy
Correct. Separate EL. Several banks I have seen had an agent certification form and circulated it. We modified it to make it non bank specific and also dually executed it with client. As clients are submitting they are uploading EL and agent certification with supporting docs.
Posted on 4/3/20 at 8:45 am to LSUFanHouston
Here is the final revised PPP application they released this morning. Dont use the other one
LINK
PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET:
BORROWERS
LINK
PAYCHECK PROTECTION PROGRAM (PPP) INFORMATION SHEET:
BORROWERS
Posted on 4/3/20 at 8:48 am to tgrbaitn08
Posted on 4/3/20 at 9:04 am to tgrbaitn08
Thanks - the only big change I see is the EIDL language in the 2.5x payroll number. So I've applied for an EIDL loan as well as the $10k advance, but haven't received either. Curious if that changes the number I had for loan request.
Posted on 4/3/20 at 9:13 am to BamaAlum02
Our professional liability provider (CAMICO) sent us this last night.
Of course, these guys are EXTREMELY conservative.
We had already decided we weren't going to accept any payments from banks. Our clients are our clients, the bank isn't our client, and never will be. There's a reason I don't send comfort letters... I'm not working for the bank!
We have told our clients we will bill them at standard hourly rates for any work we do helping them with gathering the info. The app itself is so simple. All the work is in the info gathering and calculations not on the form.
And speaking of comfort letters, I am already having bankers tell me they need the calculation on firm letterhead, attested to and signed by us. That ain't happening unless I'm doing at least an agreed-upon procedures and by the time I do that, the money might be gone. CAMICO sent out a letter we can send to the banks as well.
quote:
CPAs who assume the role of an “agent” or an “authorized representative” will create conflict of interest and independence impairment issues. We do not believe the promulgated guidelines are intended to define accountants as agents in all instances when assisting borrowers with the application process.
Of course, these guys are EXTREMELY conservative.
We had already decided we weren't going to accept any payments from banks. Our clients are our clients, the bank isn't our client, and never will be. There's a reason I don't send comfort letters... I'm not working for the bank!
We have told our clients we will bill them at standard hourly rates for any work we do helping them with gathering the info. The app itself is so simple. All the work is in the info gathering and calculations not on the form.
And speaking of comfort letters, I am already having bankers tell me they need the calculation on firm letterhead, attested to and signed by us. That ain't happening unless I'm doing at least an agreed-upon procedures and by the time I do that, the money might be gone. CAMICO sent out a letter we can send to the banks as well.
Posted on 4/3/20 at 9:15 am to Spock
quote:
So I've applied for an EIDL loan as well as the $10k advance, but haven't received either. Curious if that changes the number I had for loan request.
If you get an EIDL and a PPP, they are supposed to roll the EIDL balance into the PPP. That's why that language is there now.
Posted on 4/3/20 at 9:17 am to Spock
quote:
So I've applied for an EIDL loan as well as the $10k advance, but haven't received either.
neither have I....do you know where you can go and check the status or edit the application?
Im submitting my PPP loan today...just waiting on my CPA to send me the documents and numbers so I can upload everything to my banks portal.
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