Disclaimer: This information was correct at the time of publication; however, new guidance from government agencies may be issued at any time, causing some or all of this information to change. Please visit our COVID-19 Business Strategy Hub for the latest news and ensure you are subscribed here to receive email alerts as they are released. We are working diligently to provide the most current information as it becomes available under our COVID-19 Actionable Insights For Businesses Series.
On Tuesday, April 7, 2020, the Trump Administration announced it will be seeking to add $250 billion in aid to the Paycheck Protection Program (PPP). This action is in response to the high demand from small businesses seeking support from the program. The historic $2 trillion economic stimulus effort appears to fall short in assisting small businesses, and the Trump Administration believes providing additional funds will help facilitate a quick recovery.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) initially provided $349 billion for the PPP, and it was reported that the program has funded 178,000 SBA 7(a) loans at a value of $50 billion since applications opened on Friday, April 3, 2020. The additional $250 billion will go directly to the PPP to provide small businesses with resources to cover payroll costs, helping to reduce further economic fallout from the Coronavirus crisis.
Many businesses have not yet applied for SBA 7(a) loans or have encountered issues with obtaining these loans from lenders since the program rolled out last Friday. If PPP funds are increased by Congress, there will also be an increase to the timeline for businesses to apply for loans and address any lender issues. The PPP is a great way for companies to maintain staffing levels, and by doing so, they may receive the loan forgiveness benefit tied to this program.
As Coronavirus-related relief programs continue to evolve, we are committed to keeping you informed with the latest updates and how you can take action. If you haven’t already, it is important for your business to act now and apply for an SBA 7(a) loan, increasing your chances of receiving the PPP benefits. Even if more relief is added to the program, resources are still limited and will be distributed on a first-come, first-serve basis.
To learn more about CARES’ PPP and how to apply for an SBA 7(a) loan, explore the following articles in our COVID-19 Actionable Insights for Businesses Series:
- April 7, 2020
Alert: SBA Issues New Eligibility and Calculation Details for 7(a) Loans – What You Need to Know
- April 6, 2020
Partner Compensation and CARES PPP Loans: What You Need to Know
- April 3, 2020
Alert: SBA Releases New Details on 7(a) Loans – What You Need to Know
- April 1, 2020
Urgent Action Needed: Banks begin taking SBA 7(a) loan applications on Friday, April 3, 2020
- April 1, 2020
CARES Act Paycheck Protection Program 7(a) Loans – What You Need to Know
If you need assistance with your 7(a) loan, the Moore Colson team can assist you and your team with the following:
- Calculating the 7(a) loan amount
- Helping your business apply for the 7(a) loan
- Calculating the forgiveness amount
- Assisting with the forgiveness application
- Helping with short and long-term cash flow projections
- Helping calculate the credits under FFCRA and CARES Act
Bert Mills, CPA, is the Managing Partner at Moore Colson. In his role, Bert sets the vision and mission of the Firm and works closely with the Firm’s leadership to drive and implement strategies.
Steven Murphy, CPA, is a Partner in Moore Colson’s Tax Services Practice. He is the Practice Leader for the Transportation Industry and also serves as the Tax Practice Leader for the Retail Industry. Steven has over 20 years of experience leading tax engagements and implementing tax strategies.
David Massey, CPA, CCIFP, is a Partner in Moore Colson’s Business Assurance Practice. David’s specialties include financial reporting and assurance services with a focus on the construction, healthcare and technology industries.
Brian D. Renshaw, CPA, is a Partner at Moore Colson in the firm’s Real Estate Practice and leads the firm’s hospitality group. Brian works with registered investment advisors who construct, develop, own, lease, syndicate, advise and manage all classes of real estate assets, including hotels, resorts and restaurants.