By Mike Semmann and Daryll Lund, CAE, Wisconsin Bankers Association
- Please have patience! Financial Institutions are experiencing the same slowdowns with SBA as your members. This is a common theme for each item.
- Here are 5 things businesses can do right now: https://www.wisbank.com/media/567165/5_business_tips_cares_act.pdf
- Banks are helping businesses access funds. Here’s a list of SBA lenders: https://www.wisbank.com/articles/2020/03/wisconsin-sba-lenders/ – OR Find a lender by zip for the PPP: https://www.sba.gov/paycheckprotection/find Your financial institutions not on this list? Check with them as the list is changing constantly.
- Businesses have many options for funding. How many different COVID-lending programs are there? https://www.wisbank.com/articles/2020/03/covid-19-lending-options/
- What form do I fill out to apply for the Paycheck Protection Program (PPP)? Check with your financial institution first. SBA PPP Sample: https://www.sba.gov/document/sba-form–paycheck-protection-program-ppp-sample-application-form. Treasury form: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
- Two considerations if you have a member who’s going to use a real consultant to help them with the PPP. Make sure they know the rules. Check with your insurance companies in case the consultants don’t.
- Beware of fake consultants. See this WBA press release: https://www.wisbank.com/press-releases/2020/03/paycheck-protection-program-beware-scammers-claiming-easy-access-to-money
- How long will the money last? While $350 billion is a LOT of money, demand is greater than supply right now. Again, all the financial institutions are just learning what the rules are!
- We’re doing our best to make the complex look simple: the difference between the PPP and the SBA Disaster Recovery Loan (EIDL) https://www.wisbank.com/articles/2020/04/differences-between-ppp-and-eidl/
- There is one official website for SBA: https://www.sba.gov/ and one for Treasury: https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses
- The credit unions and banks are on the same page and issued this joint statement on April 2:
A joint statement to the small business community:
On behalf of Wisconsin’s community banks and credit unions, we want to assure Wisconsin small businesses we are eager to be your partner in weathering financial challenges brought upon by this unprecedented pandemic.
In addition to guidance and instruction provided specific to small businesses, brief guidance on the Payroll Protection Program was provided to financial institutions earlier this week. The guidance left us with unresolved questions and concerns, for which our industries are proactively seeking answers.
As we wait and then process the more comprehensive guidance, expected in the coming hours or days, we ask for your patience. Our institutions are working tirelessly to effectively and efficiently process your Payroll Protection loan applications as soon as possible, and to moreover find financial security during these challenging times.
For guidance on how to apply visit https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.