Trouble Apply for a PPP Loan? Updated Information

Paycheck Protection Program (PPP)

Get the Right Information

TRAA has brought on extra resources and expertise to help inform and guide our members through the process of applying for the loan to grant Payroll Protection Program (PPP) and for the low-interest Economic Injury Disaster Loan (EIDL) program.

Some TRAA members have struggled to participate in the PPP program and are having difficulty finding a bank that will accept their application.

There is some incorrect information and lots of confusion floating around out there. TRAA is here to provide the facts and to answer your questions to help you navigate the confusing PPP process.

Paycheck Protection Program (PPP)

Updated Facts

Both the Trump Administration and the bipartisan leadership in Congress have pledged to provide additional funding for PPP so that no eligible small business is turned away for a lack of funding.

In order to participate in the PPP program you must apply through a Small Business Administration (SBA) qualified lender. There is not a direct PPP application through the SBA.

There are loan brokers popping up on the internet offering to “process” PPP applications. Many of these brokers are looking to make money off you by charging to find you a SBA qualified lender. They cannot process applications themselves.

The PPP rollout on April 3rd was chaotic and confusing. Banks did not receive guidance on the program until late that evening and many large banks refused to participate in the program or to take applications without further guidance.

Bank of America was alone among big banks that began processing applications on Friday (4/3). As of Wednesday (4/8), Bank of America had received 250,000 applications from small businesses. Citigroup is not taking applications at this time and Wells Fargo had a cap of $10 billion on their applications.

Almost all of the SBA qualified lending banks favored existing customers with large bank balances and bank activity and almost all banks excluded applications from businesses that were not already bank customers.

As the initial rush of applications subsides, SBA qualified lenders will loosen their requirements on who can apply and the U.S. Department of the Treasury is committed to expanding the number SBA qualified lenders.

You can find the SBA lenders in your area here: https://www.sba.gov/paycheckprotection/find

If you're having trouble finding a SBA qualified lender to accept your application. Lendio is an online service that does not charge any fees for finding an SBA qualified bank. Note, TRAA is not affiliated with Lendio. https://www.lendio.com/covid-relief/sba-paycheck-protection-program-loans/

Lendio can also identify SBA qualified lenders who will lend to non-bank customers. The Lendio applications is simple and online. You can find it here: https://www.lendio.com/bp/owner-info?interest=PPP%20Only

Only SBA qualified lending banks can accept applications for PPP. These banks will either accept or deny an application. Once accepted, applications are forwarded to the SBA which guarantees the loan and the bank releases the funds to your account.

While each banks may have their own form of application, the SBA requires banks to provide the following information which you can find here: https://www.sba.gov/document/sba-form--paycheck-protection-program-ppp-sample-application-form-0

If your application is denied by the bank, you can reapply providing any information that was missing in the original application.

Small businesses across the country, in all industries, are having difficulty applying for the PPP program. As the SBA establishes guidelines, improves their system, and expands the number of SBA qualified lending banks, you will find the process more accessible. We've already heard positive feedback from many member companies who've been successful in getting approved for a PPP loan. Be patient and keep at it. The money is not going to run out.

TRAA is here for you and will keep you updated with new developments as they arise.

Thank you for your membership in TRAA, "the voice of America's towing industry!" We hope this information is helpful during this difficult time.

This notice is the property of TRAA and may not be copied, duplicated or reprinted without TRAA's express written permission. The information provided is for informational purposes only and not for the purpose of providing advice.