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I applied for a PPP loan today. I was going to live Tweet it, but I had a feeling it was going to take too long.
Good news: application submitted!
Bad news: it's gonna be a messy process
1/14
Good news: application submitted!
Bad news: it's gonna be a messy process
1/14
First, the rules are changing in real time. In the middle of my application I got an e-mail from my payroll provider with a payroll report updating the one they sent me yesterday (literally) reflecting the rule changes.
2/14
2/14
And when I did the calculation myself, I came up with a third figure.
3/14
3/14
I've been prepping all week. The company I'm applying for has 3 banks:
Bank#1 - we're not an SBA lender
Bank#2 - we'll contact you when we know the process
Bank#3 (who has a brand built on start-ups) - fill out this web form and we will contact you when we know the process
4/14
Bank#1 - we're not an SBA lender
Bank#2 - we'll contact you when we know the process
Bank#3 (who has a brand built on start-ups) - fill out this web form and we will contact you when we know the process
4/14
Fortunately, our lead investor connected us with @BlueRidgeBank
To their credit. They have an application portal up and it ran all day with no problems. Credit to them (and to their IT team)
5/14
To their credit. They have an application portal up and it ran all day with no problems. Credit to them (and to their IT team)
5/14
Submitting the application is simple enough. A few questions, a couple documents. Much simpler than EIDL loans which I had started last week. (You can only apply for one.)
6/14
6/14
@Blueridgebank said they would get back to me in a few days. Which would be a miracle if they do. They must be getting a flood.
7/14
7/14
Here's where I get confused. Most of the banks I know do not seem ready to lend. But apparently the program is first come first served and all applications have to be in by the end of June.
8/14
8/14
I believe the loan pool is $350 billion. And it covers 2.5x monthly payroll,capped at $100k per year per employee. That works out to 1.4m employees (at the cap).
9/14
9/14
Even if we assume average monthly payroll is only $50k, that is 2.4m employees. And if we assume 100 employees per firm, that works out to only 24,000 companies. There are 1 million+ businesses in the US.
10/14
10/14
You can move around the assumptions but it just doesn't seem like the PPP is going to be sufficient.
11/14
11/14
And factor in all the uncertainty about applications, I'd be worried the pool gets tapped entirely before most companies can apply.
12/14
12/14
p.s. Just as I was typing this, Bank #2 sent out application instructions. But they don't even have an application portal, just links to a bunch of SBA form PDFs. (sigh).
13/14
13/14
Final note: do not mistake any of this thread as advice from someone who knows what they are doing. You should follow @trevorloy who has been doing tremendous work keeping everyone up to date on this. And talk to your accountant (if you can get through to them).
14/14
14/14
