MPL General Counsel Corner – PPP Funds Still Available, If You Need Them

The US Department of Treasury only provided two updates related to the PPP over the weekend.  We are still awaiting the Loan Forgiveness guidance.

The first was a procedural update related to the extension of the deadline to give back the PPP funds to May 14^th.  More interesting was the latest loan numbers as of 5/8.

The total amount of funds approved is now ~$189B, which is 61% of the total amount approved  ($310B) and only a slight uptick from the prior week’s reported level of ~$176B.  On top of that, the average loan per borrower has dropped further to ~$73k from ~$80k in the prior week’s report, while the approved loans are up 55% from all of round 1 levels, versus up 33% as of the first round 2 PPP update.  (see my PPP_Round_2.02t for more data).

While I cannot say for certain, a good theory for the slow loan growth in spite of the accelerated application growth is the return of funds by recipients from round one or early in round two.  Importantly, if you have not applied yet, it looks like there are going to be funds available as long as you need the money.

Here are some other things that may be important or relevant for you:

• 30% Rule Helped Apple, Maybe It Can Help You.  I thought Steve Jobs did a “pretty good” job turning Apple around.  Perhaps the 30% rule described in the Inc.com article could be a good guide for your business.
• Mutiny of the Counties – Check out the latest update from Joel Berg at biznewsPA.  He provides a good overview of the various counties and officials in Central PA that are choosing to go against the Governor’s orders.
• The Great Tug of War – Check out the latest economic and market update from Robert Teeter at Silvercrest Asset Management Group (thanks to Sean O’Dowd for sharing).
• Upcoming Webinars and Helpful Resources
  • Stambaugh Ness Town Hall (Tuesdays 2-4pm)
  • NFIB Weekly Webinar (5/13 @ 12pm)
  • RKL Weekly Webinar Series (Fridays):  Last week’s webinar provided some helpful insight into PPP loan forgiveness forecasting and cash flow modeling and some other informative tips for opening up.
  • Trout CPA has just updated their PPP FAQ page.This is a very comprehensive list of questions as you navigate the PPP landscape.

Please see all of our prior updates at the this link or if you would like to be added to our email list, please click here. 

As always, please don’t hesitate to email myself (jsanders@mpl-law.com), Andy Miller (amiller@mpl-law.com), Christian Miller (cmiller@mpl-law.com) or anyone in our office with questions or comments.