The second round of PPP funding began this Monday at 9:30AM Eastern.
This funding was $322B (as opposed to the first at around $349B). The first round of $349B funded 1.6MM business.
As for those who were waiting on that first round, the SBA hasn’t shared recent numbers, but the last time they did, there were 800K pending applications in the queue when the first round ran out.
If yours was one of those pending applications, there is a very good chance that you should receive funding.
That said, the lessons were learned from the last round, and this funding will move MUCH faster — which means that it will run out faster.
For example, they are working to ensure that specific banks don’t receive the lion’s share of funding … so if your application is with a large bank, it would make sense to apply at a different institution.
Small banks and credit unions seem to be the most effective and efficient, but if you don’t have a relationship there, Kabbage, Lendio, PayPal and LendingClub are just some of the many other “non-bank” lenders out there, and they have also had good turnaround (though they are now running into similar problems as the large banks did before).
We are here to help you through this stage, but this is what I want all of my North Atlanta clients and friends to hear:
How you manage what happens next will determine the future of your North Atlanta business
Here’s what I mean by this. Your North Atlanta business might be in any of a variety of places right now, but from what I am seeing they are falling into these four tranches:
1) You didn’t receive SBA funding, and you don’t really need it. Your North Atlanta business has held steady and/or grown through this because of your ability to work remotely, or you qualified as an essential business in your municipality.
If that’s you, then you should be building for SCALE. That means:
2) You didn’t receive SBA funding, and you REALLY need it. You’ve been impacted in a serious way, and your North Atlanta business is struggling.
If that’s you, then you’d better be applying for the PPP AND the EIDL, and working to make your banking partner’s life as EASY as possible.
We’re here to help you in that, but also you need to be doing these things:
3) You DID receive SBA funding, and it’s a good thing too … you might have gone under, had you not. You’ve been impacted, but your business is hanging in there, thanks to the SBA.
If this is you, then do THIS:
We are here to help with this.
Or, if the above three situations don’t describe you, then lastly…
4) You received funding, but it feels more like a “bonus” than a necessity. You jumped on the PPP, but your North Atlanta business hasn’t taken the hit that it might have, and the funding feels extraneous. So, again I say to you:
Disbursement compliance is essential. Don’t go crazy spending this money. Do it right.
But if you are doing well, it might be time for some dreaming. Let’s make a tax-advantaged plan for coming out of this season stronger than ever.
And we’re here to help with that too.
Prestige Accounting Solutions
I’m grateful for our chance to serve you and your business — and we are dedicated to its success, in every season.
Feel free to forward this article to a business associate or client you know who could benefit from our assistance. While these particular articles usually relate to business strategy, as you know, we specialize in tax preparation and planning for families and business owners.