Hey Small Business Owners...What are you doing to ride the storm out?

[mililo4cpa]

Originally Posted by blake5676

Spoiler!

Over the past several weeks, Bank of America has been providing support to our customers and clients through our enhanced Client Assistance Program.

In addition, beginning April 3rd, our Small Business clients may also be eligible for financial relief through the federal Paycheck Protection Program that is being introduced as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The Paycheck Protection Program is a federal relief program established by Congress and implemented by the U.S. Treasury Department and the Small Business Administration (SBA) with rules, requirements, protocols and processes that all participating banks, including Bank of America, must follow.

In order to ensure an orderly flow of these government-provided funds, we will follow the intent of the U.S. Treasury guidance, including what has been posted at the U.S. Treasury website, that small businesses that plan to apply should do so with their current business loan provider.
Small Business clients with a business lending and a business deposit relationship at Bank of America are eligible to apply for the Paycheck Protection Program through our bank. A client’s pre-existing lending relationship with us may be a Bank of America Business Credit Card, small business line of credit or business loan.
Small Business owners who do not have both a business lending and business deposit relationship with us should contact their current business loan provider as soon as possible, if they plan to apply for the federal Paycheck Protection Program. This is the best and fastest method for applying for federal relief, based on the U.S. Treasury requirements and guidance.
All applications, information and correspondence about the Paycheck Protection Program at Bank of America will occur online and through email, including the application process, submission of required documents, and follow up correspondence.
Eligible clients who plan to apply for the Paycheck Protection Program loan should be aware of the following important items:

You must have a pre-existing business lending and business deposit relationship with Bank of America, as of February 15, 2020. A Business Credit Card, line of credit or loan may be the lending product used.
At Bank of America, the federal Paycheck Protection Program will be administered online only.
Clients must have a Business Online Banking account. If you do not currently have a Business Online Banking account you must sign up for Business Online Banking as soon as possible.
Apply for the federal Paycheck Protection Program at www.bankofamerica.com/SBResources beginning on Friday, April 3rd.
After completing the application process, you will receive online confirmation of the submission.
Bank of America will process your application as soon as possible.
We will contact you with next steps and to collect any required documents. Do not proactively deliver or send documents to our Financial Centers or banking teams.
You will be notified of the status of your loan application through email communications.
Information about your application status will NOT be available through our Financial Centers or Contact Centers — due to the nature of this loan process and the steps involved.
To prepare for your application process, review requirements listed on the U.S. Treasury website. These include:
2019 Payroll — total payroll for full year 2019, by employee, as reported to the IRS
2019 Independent Contractor Costs — Listing of 1099’s-MISC for 2019 independent contractors, by person, as reported to the IRS (Note: Do NOT include 1099’s for services)
Payroll report as of February 15, 2020 or closest date after that date, by employee
Other information
Under the CARES Act, the federal Paycheck Protection Program includes the following components:

The program will be available to businesses with 500 or fewer employees to help with payroll, rent, utilities, healthcare costs and more.
Loans can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. The loan amount is capped at $10 million.
Loans will be forgiven up to the loan amount for a borrower’s payroll, rent, mortgage, and utility costs incurred and paid during an eight-week period after a loan is originated.
Loan forgiveness will be reduced to the extent of a) any reduction in employee headcount during this period (as compared to the prior year), and b) any reduction in pay of an employee by more than 25% (as compared to their prior year compensation). Borrowers that rehire workers will not be penalized for paying them less when they are rehired.
The SBA also expanded Emergency Economic Injury Disaster Loans.
Bank of America business lending relationships include small business, commercial or corporate credit cards, conventional business loan or lease, business lines of credit, business auto loans, practice solutions loans, trade and asset-based loans. Clients with these existing relationships have the established accounts and underwriting verifications in place to allow Bank of America to help provide the quickest access to the relief funds and help the U.S. government prevent fraud in the process. There are additional options that may be sources of support for small business owners:

Other Small Business Administration relief programs: The SBA is providing special financing options that small business owners can access via www.SBA.gov/disaster.
Community Development Financial Institutions (CDFIs): CDFIs, also known as local loan centers, are small and typically not-for-profit providers of loans. Bank of America is the largest investor in CDFIs in the United States – with more than $1.6 billion in loans and investments in over 250 CDFIs. On Monday, March 30, Bank of America announced that it will provide up to $250 million in capital to community development financial institutions (CDFIs) by funding loans through the Paycheck Protection Program. In addition, Bank of America will provide up to $10 million in philanthropic grants to help fund the operations of CDFIs. Find a CDFI near you via the CDFI list and locator tool.
Other small business lending providers: If you have a lending relationship at another bank, working with your current provider will be the best and fastest approach.
SBA 7(a) lenders: find a local SBA lender via https://www.sba.gov/funding-programs/loans.
Bank of America continues to provide additional support to our customers and clients through our enhanced Client Assistance Program. Learn more

Sincerely,

Sharon Miller
Head of Small Business

This is the email information I just received from BOA. I have two business checking accounts with them but no lending as I've never needed a loan from them and their credit card rewards suck, so I use Chase Ink for business. Reading this makes it sound as though I'll be pretty low priority for them to process my application.

I call bullshit on this....call your BoA rep and ask them where in the CARES act, SBA Section 7(a), or specific treasury guidance does it state that you need an existing credit relationship....

and them tell them this is directly from the treasury.gov site:

https://home.treasury.gov/system/fil...Fact-Sheet.pdf

"Where can I apply? You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating. Visit www.sba.gov for a list of SBA lenders."

[mililo4cpa]

Also, SBA raised the fixed rate from .05% to 1%, but also stream-lined the application process....

https://bankingjournal.aba.com/2020/...program-loans/

[IA_Chiefs_fan]

I'm told that there's another new app. https://home.treasury.gov/system/fil...30-2020-v3.pdf

[mililo4cpa]

Originally Posted by IA_Chiefs_fan

I'm told that there's another new app. https://home.treasury.gov/system/fil...30-2020-v3.pdf

It's quite possible, as the treasury made last minute changes last night to stream-line the process....so this app may reflect that

[SAUTO]

my bank is saying they have to confirm the borrower hasnt gotten and wont get any other sba loan to give these out.

[O.city]

Originally Posted by SAUTO

my bank is saying they have to confirm the borrower hasnt gotten and wont get any other sba loan to give these out.

I was told a similar thing I think

[Buehler445]

Originally Posted by IA_Chiefs_fan

I'm told that there's another new app. https://home.treasury.gov/system/fil...30-2020-v3.pdf

This is the form I filled out.

Originally Posted by SAUTO

my bank is saying they have to confirm the borrower hasnt gotten and wont get any other sba loan to give these out.

My bank said that this loan has nothing to do with EIDL.

But make goddamned the **** sure that's right. I'm thinking, at least philosophically the EIDL should be higher than 2.5X monthly payroll.

FWIW Ag is not eligible for EIDL. I read something that they put more funding into CCC program, so they're thinking they'll do something like MFP, but they're saying it won't be like MFP so I don't know why anyone is saying that. Whatever, don't bother applying for EIDL.

[SAUTO]

Originally Posted by Buehler445

This is the form I filled out.



My bank said that this loan has nothing to do with EIDL.

yeah mine is saying if i am applying for the eidl then i cant apply for the ppp.


i think ill call somewhere else and ask

[mililo4cpa]

Originally Posted by SAUTO

yeah mine is saying if i am applying for the eidl then i cant apply for the ppp.


i think ill call somewhere else and ask

Again, not true....you can roll an EIDL into the PPP, so fundamentally this is not true....

Again, this is a question asked on the application: https://home.treasury.gov/system/fil...30-2020-v3.pdf

[mililo4cpa]

Originally Posted by SAUTO

my bank is saying they have to confirm the borrower hasnt gotten and wont get any other sba loan to give these out.

On the final application published by the Treasury, these are a specific qualifying questions answered by the borrower as part of the application

https://home.treasury.gov/system/fil...30-2020-v3.pdf

I think banks are real nervous due to high level of uncertainty. My original prognosis is that it will take 2 months to fund due to this uncertainty, and while I certainly could be wrong on this, as of today the banks are saying things that are (to me) obvious delay tactics....

[Mr. Plow]

New form my banker sent me to fill out. Basically the same as the one I posted before with minor changes.

[Chris Meck]

Margaritas at noon. That's what I'm doing.

[mililo4cpa]

Originally Posted by Chris Meck

Margaritas at noon. That's what I'm doing.

I have to record a podcast at 12:30, but I won't be far behind you!

[BWillie]

Even if you can get the mortgage deferred, they are still going to charge you all of the interest. Your taxes and insurance still gotta be paid.

[Buehler445]

Originally Posted by SAUTO

yeah mine is saying if i am applying for the eidl then i cant apply for the ppp.


i think ill call somewhere else and ask

Goddamn sure get it 100% right before you submit the app. I know nothing but if I were running the program a disaster payment better be more than 2.5x monthly payroll.

I’m guessing my banker is right because he told me to **** off with this EIDL shit do that online. I’m guessing it is any pre-existing SBA loan. But again make goddamn sure.

Originally Posted by mililo4cpa

On the final application published by the Treasury, these are a specific qualifying questions answered by the borrower as part of the application

https://home.treasury.gov/system/fil...30-2020-v3.pdf

I think banks are real nervous due to high level of uncertainty. My original prognosis is that it will take 2 months to fund due to this uncertainty, and while I certainly could be wrong on this, as of today the banks are saying things that are (to me) obvious delay tactics....

My banker told me they get 5% as a fee. If it takes 2 months to get the money that’s a hell of a return.

The other thing is he hasn’t been approved as a provider or whatever yet. I’m guesssing the logjam stretches things out more than they are projecting.