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Treasury hinting at timing on PPP disbursements?
Posted on 4/8/20 at 2:42 pm
Posted on 4/8/20 at 2:42 pm
From today's update to the PPP Treasury FAQ document...
Question: The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?
Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval
Hopefully banks will be able to move faster than that, but SBA is giving them 10 days after approval to make the first disbursement.
Question: The amount of forgiveness of a PPP loan depends on the borrower’s payroll costs over an eight-week period; when does that eight-week period begin?
Answer: The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. The lender must make the first disbursement of the loan no later than ten calendar days from the date of loan approval
Hopefully banks will be able to move faster than that, but SBA is giving them 10 days after approval to make the first disbursement.
4
Posted on 4/8/20 at 2:45 pm to LSUFanHouston
10 days after approval I can live with. The problem is how long are the damned things going to take to process?
Posted on 4/8/20 at 2:48 pm to VABuckeye
Tick Tock
Until they decided to open it all back up?
Until they decided to open it all back up?
Posted on 4/8/20 at 3:27 pm to VABuckeye
I think it depends more so on your bank. I submitted my PPP application and supporting docs to my banker on Friday afternoon for a 7 figure loan request. He notified me yesterday that he submitted our application and that it was approved by the SBA. The loan has not funded yet but based on what others have experienced, I am guessing I will see funding hit our account in 1 - 2 weeks. At this moment, it seems like the banks are taking longer to process the applications than the SBA because they are requiring the banks to certify that the loan amount is accurate and that the funds will be used for the proper purposes or they will lose their guarantee.
Posted on 4/8/20 at 3:42 pm to LSUFanHouston
Well, then, my bank has 8 days to get its shite together.
This post was edited on 4/8/20 at 5:12 pm
Posted on 4/8/20 at 3:45 pm to PrettyLights
I hope it’s not the case but I wonder if priority is being given by banks to larger loans. Mine is 5 figures so I’m probably fricked.
Posted on 4/8/20 at 4:01 pm to VABuckeye
Mine is as well and I was wondering the same earlier. The bigger the loan the more jobs saved at once is likely the philosophy. The smaller loans like ours will likely fill in the cracks as it progresses.
Which is frustrating as shite, if true.
Which is frustrating as shite, if true.
This post was edited on 4/8/20 at 4:02 pm
Posted on 4/8/20 at 4:01 pm to VABuckeye
Well the bank will making more fees on a larger loan than a smaller.
I suspect the banks simply trying to figure out how to get loan docs out and how to fund.
We have our SBA loan numbers on both our companies and have established checking accounts with the regional bank that did them for them to fund into.
I expect that funding to come this week.
If that bank fails to fund after getting the SBA guarantee I am going to be pissed.
I am a little bit worried that there will be banks somewhere that commit to more loans than they can fund and they will have to fund loans and then sell them before they fund others.
Well Fargo, the nation's largest business lender, did get permission to expand their balance sheet long enough to make the PPP loans to their customers but they must sell their excess over the punitive limit to the fed.
I suspect the banks simply trying to figure out how to get loan docs out and how to fund.
We have our SBA loan numbers on both our companies and have established checking accounts with the regional bank that did them for them to fund into.
I expect that funding to come this week.
If that bank fails to fund after getting the SBA guarantee I am going to be pissed.
I am a little bit worried that there will be banks somewhere that commit to more loans than they can fund and they will have to fund loans and then sell them before they fund others.
Well Fargo, the nation's largest business lender, did get permission to expand their balance sheet long enough to make the PPP loans to their customers but they must sell their excess over the punitive limit to the fed.
Posted on 4/8/20 at 4:40 pm to VABuckeye
I know the bank I work with at a minimum said they will only process PPP applications only for active members of the bank as of 03/30/20. That is the only preferential treatment that I am aware of. The SBA is processing the applications in order. However, the order which your bank is processing your application likely varies from bank to bank. If I had to guess, I would imagine a lot of preferential treatment is being given to long standing customers and those with larger loans amounts.
Posted on 4/8/20 at 4:45 pm to PrettyLights
I’d imagine banks are salivating over higher loan amounts considering they get 5% origination fee from the SBA. The smaller loans are going to be put to the side for the time being. Horrible
Posted on 4/8/20 at 4:49 pm to Catchfalaya
They get 5% on the smaller loans up to $350k. 3% between 350k and 2 million and 1% above 2 million.
Posted on 4/8/20 at 4:50 pm to VABuckeye
Is anyone on here going through regions for PPP?
Posted on 4/8/20 at 4:54 pm to Catchfalaya
PNC. I was solicited by a smaller lender and they indicated that another app can be put it in. If that’s true and they can streamline the process I might explore the option. PNC is so damned big that I fear I’ll be lost in the shuffle. Meanwhile we have mouths to feed.
Posted on 4/8/20 at 5:04 pm to VABuckeye
I incorporated Jan 21 and have very little revenue. Is is even worth it to try and apply for loan?
I most definitely have lost revenue from Kung flu?
I most definitely have lost revenue from Kung flu?
Posted on 4/8/20 at 5:08 pm to Robin Masters
Do you have payroll?
Posted on 4/8/20 at 5:18 pm to VABuckeye
Here's my deal....they are asking me for my February 2020 payroll because they want to make sure I was in business and paying employees on Feb 15th.....well...we only paid one employee in Feb....the other 2 didnt take a paycheck in Feb..
Posted on 4/8/20 at 5:19 pm to VABuckeye
quote:
Do you have payroll?
Just me.
Was thinking more of the EIDL loan though.
Posted on 4/8/20 at 7:00 pm to tgrbaitn08
What month and year did your business incorporate? Is your business seasonal?
Posted on 4/8/20 at 7:50 pm to Robin Masters
quote:
Just me.
you will get something. We incorporated in September and I started paying myself in January.
For new companies, I've seen 2 forms from bank. First was an average of payroll from Jan 1st - March 31st, 2nd was Jan 1st- Feb 28th.
Posted on 4/8/20 at 7:57 pm to PrettyLights
quote:
What month and year did your business incorporate? Is your business seasonal?
1986
no we are 24/7 365
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