Starting this past week, many of the banks have put a halt to the forgiveness process as they work through changing out the old forgiveness forms with new ones. No worries, you still have about 5 months to get your first PPP loan forgiven.
The new round of PPP is making itself felt with the process more organized by the banks, but not without its glitches. The good news is, it looks like the money is going to hold out. Here are the stats from January 11 through January 31 for this year:
– 891,044 loans made
– $72,740,500,280 disbursed (a number that large doesn’t even look real)
– 4,942 lenders
– $81,635 average loan size; last year, the loan size was $101,000
– $212 Billion is still in the pot with 60 days left
I still talk to impacted business owners (a hair stylist this week) that did not know about the PPP program; she qualified for $2500. Please get the word out!!
This week’s Gold Star goes to the… SBA. But ONLY because congress told them to NOT send out 1099-MISCs for the payments they made on behalf of borrowers. I guess Congress should get a gold star but that just seems out of character; perhaps a bronze hexagon with a poison oak cluster. If you do not have an SBA loan, just ignore this paragraph.
– The Loan Source has stepped up and funded a $2.5MM loan in 7 days
– BofA continues its consistent performance
– Chase is in the game, albeit a little slower than some
– Mechanics, Citizens and other banks are performing as expected
The AICPA has written a strongly worded letter expressing concern about the glitches the SBA has for their E-Tran processing system, with most issues centering around EIN and borrower name matches, or lack thereof. This is coming from lenders that handed out the first PPP round and their borrower is coming back to them for their second draw. The same bank is declining them even though nothing has changed.
Tax Update: RMA aka Risk Management Associates is hosting a tax update on February 18 – https://www.eventbrite.com/e/2020-21-tax-planning-webinar-tickets-139708322353?aff=ebdssbonlinesearch . $10 gets you a mouthful of words to describe the IRS but Wilson Ivanova will make it look like child’s play, because Child’s Play is one category that is still not taxed. That’s the best $10 dollars you’ll ever spend!
Another scam this week when a business sent out a $70,000 payables ACH to one of their venders that had recently emailed them a “We changed banks, here is our new routing and checking account number”. ALWAYS, ALWAYS, ALWAYS verbally verify anything to do with money.