Here's What You Need To Know Today
Feel Good Friday
- PPP Forgivable Loan Program Status Update: I've talked a lot this week about how this stimulus program is a no-brainer for any small business, self-employed or contractor that has been affected by coronavirus. The program officially started today, but as expected, most banks, including Chase, are dragging their feet until they receive more guidance from the SBA and Treasury. So far, Bank of America, has been the only mainstream bank that has gone live. In order to get a loan from BOA, you must have prior lending business relationship with BOA, like a credit card or loan. The U.S Treasury Secretary Mnuchin is reporting that community banks are the most active lenders right now, and more large banks will be online in the coming days.
- If your bank isn't live with PPP loans, I would recommend checking out Lendio's program as a backup plan. (Remember, this is a first-come, first-served process, so you will need to be ready when they do start taking applications.) Lendio has pre-existing relationships with many SBA lenders, and are promising to match SMB owners and the self-employed with banks who are ready and able to initiate loans. The CEO of Lendio is also speaking truth to power on Twitter, which I sort of love.
- Mortgage companies are beginning to incorporate mortgage forbearance application forms into their online portals. This allows borrowers to stop paying mortgages for up to 12 months and is on the honor system. If you or one of your property owners is facing financial hardship, I would highly recommend looking into this program via your online mortgage portal.
- New trend: Cities like Boston and tech companies like Intuit, Facebook and Google are developing their own Small Business Relief Programs. Hopefully more local cities and companies will develop programs like this to help their small businesses.
What has your experience been like applying for a PPP forgivable loan so far?
Thanks for subscribing to my STR Newsletter. As always I'm here to help. Feel free to respond to this email or connect with me on LinkedIn.
-James von der Lieth