The SBA is finally getting around to processing the emergency loan requests. Originally, all small businesses work going to be able to qualify for a $10,000 loan which could be forgivable. The additional amount of loan would not be forgivable. This is now been changed to a loan amount of $1000 per employee. So if you have no employees, there would be no forgivable portion of the loan.
Secondly, the SBA is woefully understaffed and is slowly going through the process. If you have a confirmation number of 3300—— the SBA is beginning to process these loan requests. You should have received an email Tuesday morning indicating the $1000 per employee limitation and also that the SBA is beginning to process the loans. I also noticed on my credit alert that the SBA made a credit inquiry on my account this morning. I am not sure why they are making the credit inquiry because the loan is not supposed to have a personal guarantee and is not supposed to be based upon credit worthiness of the borrower. Nevertheless, they made the inquiry.
I have submitted many Paycheck Protection Program applications to various banks including BB&T, Republic, Wells Fargo, and Bank of America. So far, my client not yet received funds although there have been promises and more documentation requests from Republic. Also, I submitted many New Jersey Economic Development Authority grant requests. The state ran out of funds and they have shut this program down. So far, other than the initial confirmation email, no client has received a grant or further communication.
On Monday, the New Jersey Economic Development Authority opened up a loan program at 9 AM, Monday, April 13. Within one-half hour the loan program was oversubscribed. They are still accepting applications and putting them on a waiting list. Even though it takes a lot of information, it is worthwhile if the New Jersey legislature decides to allocate more resources.
If you have any questions about these loans, or need help please call me at 856-665-2121.