By Alan R. Sasserath, CPA, MS
Last week and throughout the weekend we worked with many of you to prepare the Paycheck Protection Program Loan (“PPPL”) application, apply for the PPPL, put your name on a list with your lender to be able to apply for the PPPL, and pull together many of the documents required by your lenders/bankers. Great job and thank you for the opportunity to work with you on this. This is the first step in this process, and we look forward to continuing to work with you to secure the PPPL through to funding. Over our last several writings, we discussed how to calculate the loan and since our last correspondence not much has changed in that regard.
We are writing to let you know our experience with where the banks stand. Here is what we have heard from our clients and contacts:
Bank of America: Many clients/contacts have uploaded the application and required documents. We are waiting to hear from a client or contact that has heard back from them or received the loan, other than the automated response upon uploading the application.
Chase: Chase started taking client names on an electronic list on Friday. Yesterday, several of our contacts/clients received notification that Chase would start processing the list on a first-come, first-serve basis. One of our contacts has received an email or text from Chase and Chase followed up with an information request and phone call. All information was uploaded through Chase’s website. Our contact was told that they may receive the money by the end of this week.
TD Bank: TD Bank started taking client names on an electronic list on Friday. We have yet to hear that anyone we know was contacted from that list. We also do not know what the TD Bank process will be. One client was told that they will receive a link via email to upload the required documents once the system is up and running. However, that was only one person at TD Bank that said that and none of our other clients/contacts have been able to confirm this. Here is the link to get on the TD Bank list.
Wells Fargo: This is an answer to the question – How can I apply for a PPPL? – from the Wells Fargo website:
• We are not yet accepting applications, but we have launched a tool to start the process.
• You must have Wells Fargo Business Online Banking in order to apply. If you are not enrolled in Business Online Banking but are eligible to do so, you should first enroll in Business Online Banking in order to access the link to apply. Enroll here.
• Start the process by expressing interest in seeking a PPP loan by logging onto Wells Fargo Business Online Banking and clicking on “Get Access to the Paycheck Protection Program – Learn More” and answer a few simple questions. This step will take less than 5 minutes.
• We’ll email you with next steps within a few days.
• You will not be able to submit your application though the federal or SBA website applications. Visit the SBA website for additional resources or to find another SBA lender.
Capital One Bank: I poked around their website, but only found general information related to the PPPL. They stated that they are testing/working on their systems and to continue to check their website for updates. We spoke with a loan officer at Capital One on Friday who said that he was not provided any information as to how the PPPL application process will work or what information will be needed.
Citibank: I poked around their website, but only found general information related to the PPPL. They stated that they are testing/working on their systems and to continue to check their website for updates.
Signature Bank: I was told that they have PWC working on their portal day and night and expect to be accepting applications and documents tomorrow (Monday) morning at 9 a.m.
National Business Capital (“NBC”): NBC is client of ours and an agent for several SBA preferred lenders. They have been accepting applications and documentation since Friday and once each package is completed, they are forwarding them onto the lenders. Again, no funding has occurred yet from these lenders.
BNB Bank: They have started taking applications and processing on Friday and has gotten back to several customers with additional document requests. As with everyone else, still waiting on any funding.
As of mid-day Friday, Treasury Secretary Mnuchin tweeted that $1.8 billion had been processed by the SBA, mostly from community banks. We don’t know what that means in terms of funding. We have yet to hear of any client or contact whose loan has been approved/funded.
President Trump, Treasury Secretary Mnuchin and Speaker Pelosi have all stated that they support expanding the funding for this program. We have yet to see what that means.
We know everyone is frustrated. As I mentioned early on in our emails, communication is key during this time. Some banks have done better than others in terms of communication. It is important to note that this process has not been easy for you, the banks or anyone else involved, especially given the fact that the least confusing guidance (notice I said “least confusing guidance” and not “final guidance”) came out late Thursday and the program started on Friday.
As this process evolves, we will continue to keep you apprised of what’s happening. We are all trying to make our best decisions on the limited information we have available.
If you have had a different experience with one of the banks mentioned above or any experience at a different bank, please let us know and we will include it in the next update.
As always, please let us know if we can help in any way. We wish you all the best in these troubled times.
Stay safe and healthy.