CARES Act Update 5/24/2020
PPP Forgiveness Update On Friday evening, the SBA released Interim Final Rule SBA-2020-0032 which clarified a number of outstanding questions that I had on the PPP Forgiveness application which was released about a week prior. I have been working tirelessly consuming all of this material and tweaking spreadsheets to be able to help some of my clients both forecast expected forgiveness, as well as prepare for the ultimate moment at the end of their 8 weeks when they get to request the forgiveness.
I now want to offer this service to a wider audience. If you're wondering how to calculate your anticipated forgiveness, as well as to prepare for collecting the documentation that will be needed for this part of the process, I am available. For this service, I will charge $950 up front, and then a fee of 1% of your true forgiveness amount (1% waived for loans under $25,000).
Remember that the decision of forgiveness rests almost exclusively in the hands of your lender. We can only endeavor to prepare everything exactly as outlined in the CARES Act, along with guidance that has subsequently been issued by the SBA and Dept. of Treasury. This guidance has already changed multiple times since the passage of the CARES Act. I can make no guarantees as to actual forgiveness amount offered by your lender and the SBA. That said, I've tried to structure my fee so that I have a vested interest in working with you to maximize the forgiveness amount, and will offer up strategies when I see opportunities for maximization.
Also remember as you consider the forgiveness portion that your true forgiveness amount MAY still ultimately be reduced by the amount of any EIDL Advance (sometimes referred to as the EIDG or "Grant"). Think of this money, if you got it, as "pre-forgiveness".
EIDL Update It appears that those who put in their EIDL applications in the first part of April are starting to receive their loan offers (or, in at least one case I've seen, a decline decision). Please understand that this is a true loan. There is no forgiveness tied to this aspect of the CARES Act relief. That said, the repayment terms are favorable (3.75% over 30 years in most cases), if you're considering taking on new debt, this may be a fair choice for your business. If you'd like to talk with me about strategies for forecasting this from a cash flow perspective, or whether or not this is even a reasonable decision for your business at this point in time, please get on my Calendly and we can have a chat about best next steps for stepping up our relationship!