In the Case of PPP Applications, Time is of the Essence

$349 billion in forgivable loans for small businesses



The Paycheck Protection Program (PPP), perhaps the most crucial element of the Coronavirus Aid, Relieve and Economic Security (CARES) Act, sets aside $349 billion in forgivable loans for small businesses feeling the impact of COVID-19 nonessential business shutdowns amid social distancing orders. Even before the CARES Act was signed into law, struggling businesses were already lining up with questions about how to qualify and apply for aid. Likewise, finance professionals are seeking out the best routes to assistance for their firms.

With the first rounds of applications officially open, time is of the essence. These crucial funds, which can be used to cover the cost of payroll, benefits, leases and utilities, will be available through June 30 or until those funds run out, according to the Journal of Accountancy, and run out they will. A case in point, Wells Fargo delayed on opening day to review the interim final rule released a day prior before processing loans. Even entering the fray late, the bank announced it had reached its $10 billion cap in loans on Sunday. 

Ten billion dollars is a substantial amount of money to distribute in less than two days, especially while guidelines are expected to continue evolving. Applications for self-employed individuals and independent contractors will open on April 10, and doubtlessly, those funds too will distribute just as quickly. Funds for the PPP are distributed on a first come, first serve basis with funding caps enforced. Therefore, the key to securing funds for your small business or sole proprietorship will be to act quickly.

In Michigan specifically, the MICPA, the Small Business Association of Michigan, Lt. Governor Gilchrist, and former Lt. Governor Calley have formed a coalition to make that process easier and clearer for applicants within the state. The Michigan Paycheck Protection Program (MiPPP) website is designed to guide applicants through the process of determining qualification and application quickly and efficiently. The effort is the coalition’s best foot forward to ensure that Michigan businesses have a leg up in the race for funding to secure their operations and employees, thereby bolstering the state’s economy and the livelihood of its workers during this unprecedented situation.

Information surrounding this pandemic and its relief efforts are changing rapidly. To keep abreast of all resources and changing information, financial professionals and business owners should take advantage of MEDC resources and their FAQ page, Michigan’s Coronavirus Info Center, the CDC and MICPA’s COVID-19 resource page for the latest updates.

Source: MICPA

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