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  • Greg Cullup

CARES Act Update 4/5/2020

The updates in the 9 days since the CARES Act was signed into law have been coming fast and furious - and I have been working tirelessly to try to stay up on top of everything when it comes to the EIDL and PPP Loans.


Quick Synopsis:

EIDL Loans (application link sent last week) are likely going to be the quickest way to get an injection of cash into your business with the "up to" $10,000 Emergency Grant. I have heard of no one who has yet received this money, despite it being promised to have been funded in 3 days...so, we wait... But an important thing to point out is that these are LOANS - of which the first $10K *MAY* be considered as a grant.


PPP Loans - or the Paycheck Protection Program - are, again, LOANS - of which most of the amount of the loan will be forgiven in the 8 weeks after the loan is funded. This is why many folks are touting this as "free money". It is free money, in a way, but with a ton of stipulations. Additionally, my accounting friends and I are finding numerous "holes" in the plan where certainly not ALL of your payroll expenses will be forgiven - but it's certainly better than nothing (in my opinion).

It is for these reasons that I urge you to work with your CPA or EA to determine your best course of action in response to this crisis. I'm anecdotally hearing of cases where it is far more beneficial for both your employees and to your business to actually have your employees file for unemployment, than it is to apply to the PPP - but only your tax professional will be able to work through this for you.


All of the above disclaimers aside, it's my understanding that for many (and likely even most) businesses, applying for the PPP Loan is going to be a preferred route to go. The next logical question is, how? These loans HAVE TO be applied for through a financial institution - the most common place to start is your own bank. Most banks are currently only accepting applications from their own existing clients. Some banks still aren't even down with PPP. I've created a very rudimentary web page to track the banks used by everyone in the scope of this email:

PPP Bank Application List

If your bank is not yet ready to take your application (or you do not wish to use your bank), I have an affiliation with Fundera and HelloWorks which will guide you through the process of submitting your information, which will then be followed up with via an email to walk you through the next steps of continuing the application:

TNG/Fundera PPP Loan Application

The Federal government forbids anyone from accepting a fee for completing the application on behalf of another - nor would I want to apply for any loan on your behalf - this is a decision you fully have to make on your own as the representative of your business. That said, I do want to avail myself to you, if needed. I am charging $350 to existing clients ($500 to non-existing) to assist in the collection of the data needed to complete these applications. The data needed varies by financial institution, so unfortunately there's no quick report for me to generate. Additionally, some of you run your own payroll, so my access to payroll records will be constrained. I am including 2 hours of research and collection time in the above fee - if my time spent happens to go beyond that (I'm not anticipating it ever will), I will bill that time at my expedited fee of $250/hr. If you are interested in this service, please let me know what information is needed by your bank, since the records requested do vary bank by bank.


Thanks for reading all the way through this - I do hope that it provides you with some insight, and leads you in the right direction that will guide us through this challenging period. Stay happy, stay healthy, and stay home if you're able...

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© 2020  by Greg Cullup, The Numbers Guy

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