MPL General Counsel Corner – PPP Round 2 Funds Availability Increasing, not Decreasing
The Department of Treasury released stats yesterday for the PPP through 5/16/2020. Interestingly, they pooled everything together (i.e., round 1 and round 2) for this update. If my math is right (see attached spreadsheet), total funds allocated for round 2 declined to $171B from $189B as of the last update from 5/8 The average loan size per borrower also continued to drop to ~$64k per recipient from ~$74k as of 5/8 and $206k for Round 1.
Even with the good faith certification uncertainty removed, it looks like more borrowers are opting to return the PPP funds. Possible reasons for the increasing availability of round 2 PPP funds could be a slower than expected business reopening environment if at all (i.e., no sense in taking the loan if the forgiveness benefit cannot be realized) or no real need for the funds. The optimist in me hopes it is the latter, but the realist tells me it is likely the former. If you have returned the PPP funds, please make sure you are fully reviewing the other relief options that are available such as employee retention tax credit.
Also, for those that are approaching the end of your PPP initial 8 weeks, here is the loan forgiveness application. There are several PPP Loan Forgiveness webinars that are coming up. I have listed them in the bullet points below.
Here are some other things that may be important or relevant for you:
- Upcoming Webinars and Helpful Resources
- Trout CPA: Understanding the NEW PPP Loan Forgiveness Application webinar (5/20 @ 10 AM).
- NFIB: PPP Loan Forgiveness Explained and Other Questions Answered (5/20 @ 12pm).
- EisnerAmper – Insurance Recovery for Pandemic Losses: Issues and Options (5/20 @ 2:15pm)