|It’s the most wonderful time of the year!!!
Except for the few poor souls who are getting their PPP kicked back…
Yes, you heard me right… KICKED BACK.
In between year-end meetings (4 to 5 a day), I have also talked with many bankers as it is time of the year to renew credit lines… which has also been a stressful time for some.
(I guess now I know what it feels like to campaign)
So today, I had a great conversation with a lender when I found out the shocking truth that the SBA is kicking back PPP loan forgiveness applications based on not “demonstrating need”…
Now, remember this was NEVER defined – and need can mean “WE DIDN’T KNOW WHAT THE HECK WAS GOING TO HAPPEN…”
And maybe that’s good enough? But, it’s looking like at least for some people… it’s NOT enough…
So, yes I can confirm that the SBA is being the GRINCH for some people…and rejecting some applications.
So, what do you need to do?
1) Get started on your application as soon as possible, there’s a window of time that the SBA has to review your application. Therefore, just because you submit an application does not mean that it will get reviewed immediately… therefore if you wait until the last minute you might have to start paying on the loan if the grace period lapses during the time that your application is pending an SBA review.
2) Attach a narrative about the uncertainties your business was experiencing and any declines in revenues… if the last part didn’t happen better focus on the uncertainty.
3) Talk to your CPA about facts and circumstances before sending – want to be very careful about what you say and don’t say –
This advice is coming straight from a lender who is “heading” this process at the bank… so take note.
PS: We recently opened up digital access to STRAIGHT TALK INSIDER for non-clients, JUST REGISTER to ACCESS.
PSS: A lot of people will be blinded sided by this simply because they didn’t have the right information. Signed for our monthly E-letters to stay up to date with the latest developments.