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 April 16, 2020, the U.S. Small Business Administration (SBA) announced it will no longer take 7(a) Paycheck Protection Program (PPP) loan applications as funding has been exhausted. Applications for the loan opened on April 3, 2020, with $349 billion in funding, which was dispersed on a first-come, first-serve basis. PPP loans provided much-needed relief to millions of small businesses to help sustain operations and keep workers employed. During this time, the SBA has approved more than 1.6 million loans submitted by approximately 5,000 lenders.
The SBA has updated its website noting it is “unable to accept new applications for the Paycheck Protection Program based on available appropriations funding,” and that it is “unable to enroll new PPP lenders at this time.” Congress has not yet reached an agreement on replenishing funding to the PPP program because of disputes over how the program would allocate loans to businesses. The American Institute of Certified Public Accountants issued a news release today urging Congress to approve additional funding quickly.
On April 9, 2020, the Federal Reserve established the Main Street Lending Program (“MSLP”) to assist small to mid-sized businesses impacted by the coronavirus pandemic that were previously in good standing. While this might be another funding option for many companies at this time, it is still not open, and not all businesses are eligible. You can learn more about this upcoming program by reading our recent blog: An Overview of the Main Street Lending Program – What You Need to Know.
Things are continuing to change quickly, and we are committed to keeping you informed through our COVID-19 Actionable Insights for Businesses Series. We encourage you to subscribe to our alerts here so you can stay informed and take action as needed.
If you need help, the Moore Colson team can assist with the following:
- Assessing whether the Main Street Lending Program is right for you
- Calculating the 7(a) PPP forgiveness amount
- Assisting with the PPP forgiveness application
- Helping with short and long-term cash flow projections
- Helping calculate the credits under FFCRA and CARES Act
Chris Arnone, CPA, is a Partner and Business Assurance Practice Leader at Moore Colson. Chris has over 20 years of experience providing audit, accounting and consulting services for companies in the transportation, manufacturing, distribution, staffing, private equity and venture capital industries.
Andy Starnes, CPA, is a Partner and Tax Services Practice Leader Moore Colson. Andy’s specialties include corporate tax compliance and planning, business consulting and multi-generational planning with a focus on the construction, professional services and staffing industries.
Tyler Wright, CPA/ABV/CFF, CFE, is a Director in the firm’s Consulting Practice. Drawing on 15 years of experience as an external auditor, internal auditor and forensic accountant, Tyler provides accounting and financial advice in forensic investigations and commercial disputes.