Insights

COVID-19 Loan Programs

March 31, 2020

We have been fielding a lot of calls about loan program details, and which might be right for certain businesses.  Accordingly, we wanted to push out the attached memo which gives an overview of the two federal programs for small businesses as provided in the CARES Act (the PPP and EIDL programs).  The memo also discussed the PIDA program for PA small businesses.  While the EIDL and PIDA programs are up and running, the PPP is still being prepared.  As it will be administered through SBA approved lenders, the lenders are in the process of developing their internal programs prior to accepting applications.  They are also, as of writing this, waiting for SBA guidelines on administration of the PPP program.  This is all to say don’t despair… there have been no deadlines missed, and the great majority of lending relief has yet to even begin.

While reviewing loans, we would like to stress CAUTION in the application process.  As with all unfortunate situations, there are certain people looking to take advantage.  In this case, that includes scammers looking to hijack application data.  For those of you who may be applying for an SBA EIDL, it has been discovered that scammers actually hacked into the original EIDL website and somehow were able to redirect applicants to a different site to make application.  This site is asking for personal banking information and when you don’t input it someone personally calls you.  Please be on the lookout for grant fraud, loan fraud, and phishing!

Here are several links to official SBA websites you can utilize:

  • A link to the SBA page regarding Scams and Fraud Alerts: Learn More
  • A link to the official SBA.gov website for the EIDL: https://covid19relief.sba.gov/#/.
  • A link to sba.gov.   There is a yellow banner that floats across the top of the screen.  You can click on it and it takes you directly to the EIDL page.
  • Linked is updated information on the SBA Economic Injury Disaster Loan and application process from the SBA. They have changed the process as of March 30th for a more streamlined approach. Hopefully, this can help
    1. show exactly what the process is (for those of you applying, and show that it has become much easier), and also
    2. put those of you that will or have already applied at ease if my prior email gave you any concerns about fraud.
  • And for those of you worrying about time, please know that individuals that applied over a week ago are just finding out that, while their applications have been approved, no loan amount has been determined or money actually been paid.

As always, information will be able to view all current and prior updates on our Resource Center.  For tax information related to the COVID-19, and more importantly the CARES Act, feel free to review information here from Eisenhart & Co., one of our trusted CPA partners.   Thank you, and stay safe.

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