General Counsel Corner – PPP: Think Before You Apply
The House passed Stimulus 3.5 last night. Hopefully, the applicants will in good faith need and ultimately receive the funds. As pointed out yesterday in the latest PPP FAQ, you are attesting in “good faith” that you need the funds and do not have access to the capital markets for your liquidity needs (i.e., you have no other option to get money to stay in business). One other thing to mention is if your bank or lender is not accepting applications, please go to another SBA lender. You are not required to use your own bank, but it is recommended. Here is our list that was compiled before PPP round 1.
Please think before you apply for PPP or other relief program funds.
A few things that I think may be relevant or important for you to know:
- Who were the big lenders in PPP Round 1? Check out the links and articles below for a quick run down
- Nationally: Check out www.covidloantracker.com. It is put together by a husband and wife entrepreneur duo and has some very interesting data (thanks to Joel Berg @ BizNewsPA who brought this site to our attention).
- Philadelphia Area: The Philadelphia Business Journal did a nice rundown of Philly area banks that provided the most PPP loans. (thanks for Steve Raymond from the DAK Group for the article)
- Pennsylvania: The Central Penn Business Journal provided a good article about PPP lending for the State.
- What will the forgiveness application look like? A WSJ editorial written by Senator Johnson from Wisconsin could provide some insight as to what the application for the forgivable portion of the PPP loan might look like. With the negative PR from organizations like Shake Shack and Harvard initially receiving funds, you can bet that the Federal Government will be adding in more protective measures. I would not want to be on the other side of that group. (Thanks to Attorney Rob Clofine for bringing the WSJ article to our attention)
- Upcoming Webinars and Helpful Resources
- RKL Weekly Coronavirus Webinar Series (Friday, 4/24 @ 11am): Here is the link for the upcoming webinar:
- Stambaugh Ness Town Hall (Tuesdays 2-4pm): Here is the link for the webinar registration
- National Small Business Town Hall presented by Inc.com and the US Chamber of Commerce (4/24 @ 12pm) Here is the registration link.
Please see all of our prior updates at the this link.