There are LOTS of questions surrounding the PPP 7(a) Application process.  Unfortunately there are still more questions than answers.  We have talked to countless professionals across the country.  The banks aren’t sure, the SBA regs aren’t finalized…there are few clear answers.  But maybe this will help a bit.

Q:  The rollout is supposed to be tomorrow, 4/3/2020.  Will the banks actually be ready? 

A:  Unknown.  Last night appeared unlikely.  Today it is a possibility. 

Q:  The PPP funds are limited to $349 billion.  How soon will they run out?

A:  Unknown.  But funds are expected to go quickly.  You should move quickly once the process is finalized if you want to participate in this program.

Q:  Do I have to use the SBA standard application or is the application my bank sent me acceptable? 

A:  Unknown.  In a rush to please their clients, many banks moved forward developing their own applications.  Rumor this morning is that SBA will require its standard application.

Q:  Is the SBA application that was circulating a day ago the final version?

A:  No.  It changed at least four times yesterday and will likely change more today.  We have no confidence the final version is yet released.

Q:  Should I wait for the approved application process that will be finalized by SBA and my lender?

A:  Most likely yes.  Use the applications you have received or seen as a guide and be ready with the same information for the final application.

Q:  Will the entire loan be forgiven?

A:  Unknown.  The regulations for this portion do not have to be finalized until 4/12.  Details prior to that date will be largely speculative.  Wait for real information; don’t listen to the “noise.” 

Q:  Can or should I engage you to prepare the application for us? 

A:  No.  For efficiency we are recommending you prepare these yourself to the extent possible.  We are here for you to help fill in your unknowns.  We, like our other ADCPA colleagues around the country, do not have the capacity to prepare these for all our clients in the time frame we are recommending you get them submitted.  We are not at all saying we are too big or too busy for you!  But when everyone literally needs something on roughly the same day, we have to be realistic about capabilities.

Q:  What if I don’t get this loan for whatever reason—funds run out, my practice didn’t qualify, etc?

A:  It will all be ok.  You still have the SBA EIDL loan as an option to get you through.  Once the Corona scare is over, it is expected that practices in Texas will be running again at max capacity, and even after hours and weekends making up missed appointments.  EIDL funds, LOC funds, personal funds, if needed, will help get you through this valley.  There could be additional relief coming as well.  Once you are on the other side, you should have plenty of revenue to pay your bills and repay your loans.

Q:  I’m hearing from other professionals that PPP may not be great for me.  Is this loan a good idea? 

A:  Every situation is different.  If used properly it is a perfectly good part of an overall strategy.  Is there a situation in which it might be unhelpful?  Sure; but we’ll direct you in the best timing and use of the funds to the best of our ability.