There were millions of small businesses that didn’t get anything in the first round of Payroll Protection Plan (PPP) loans offered by the SBA. While Congress works on determining what the next round of funding will be, it’s reasonable to ask about what to do if you didn’t get a PPP loan?
I don’t think anyone seriously thought we would run out of $349 billion dollars over the course of 14 days, but we did. I’m not a member of Congress and certainly don’t have the inside track regarding what this administration is doing, but I can’t imagine a scenario where there isn’t another appropriation to provide additional capital for small businesses struggling with the challenges facing Main Street right now. I don’t think anyone wants to face a future where Main Streets across America are shuttered due to the economic ravages of COVID-19.
With that in mind, let’s talk about some of the things you can do while we all wait for additional funds to become available.
Preparing for the Next Round of Funding from the SBA
I’m optimistic that over the next week (or maybe two) more funds will be allocated for the PPP or whatever they call the next iteration. With that in mind, here are a handful of things I think will better position your small business for the next phase.
- Make sure you’re bookkeeping and financial records are up to date. Take the time to gather your financial records together. Lenders will want to validate your PPP eligibility and the data that will inform your funding amount. You can read more about the PPP application HERE. We went through the application line by line so you’ll know exactly what to expect.
- If you’re self-employed, check out the most recent SBA guidance before applying. It’s very likely that many of the rules for the self-employed and sole proprietors who don’t have employees and file a Schedule-C when they file their taxes will remain the same. With that in mind, on Monday of this week (4/13/2020) the SBA released further guidance on the application process for them. You can learn more about the guidance HERE.
- Stay up to date with COVID-19 financing landscape. The CARES Act SBA Loan Insight Hub has a little over 10,000 other small business owners just like you who are trying to navigate this process. You can join the group HERE.
- Stay the course. Regardless of the lender you’ve chosen to apply for a PPP loan, now is not the time to bail. Continue with the application process so you don’t lose your place in the queue when funds become available. If you’ve started the process with Nav, we encourage you to continue so we can match you with the PPP lender or partner that will be the best fit for your business when funds are replenished.
- Reach out to your Congressional Representatives. Take time to reach out to your representatives in both the House and the Senate to let them know how important these funds are for Main Street businesses and that acting sooner, rather than later, will make all the difference in the number of small businesses that survive this crisis and those that exit shuttered.
The Straight Dope
The next couple of weeks are going to be challenging. Expect the process to slow down if you have an application submitted and are waiting for news. We will do our best to keep you informed and up to date via our Facebook group and this blog. We will share what we know when we know it and it will be accurate, timely, and candid information that will help you make decisions about next steps for your business.
We’re all in this together.
This article was originally written on April 17, 2020.