Financial stresses caused by the uncertainty of COVID-19 have created a sudden and significant need for financial resources to aid small businesses. In response, the U.S. Small Business Administration (SBA) created the Paycheck Protection Program (PPP), a loan program designed to help qualifying small businesses continue to pay their employees, and in part, help shore up the U.S. economy in a time of crisis.
Challenges and Questions
While the program has begun to assist small business owners in a critical time of need, its deployment hasn’t been clear of complication. Some business owners, such as home repair services, find themselves with payroll funds for employees who can’t work in their customers’ homes due to social distancing requirements. For others, stringent expectations around when the money must be used have created questions and confusion. These are just two examples of emerging issues.
Timely resources for borrowers and lenders participating in the SBA PPP
PPP participants need information that cuts through the noise and provides authoritative, relevant, and recent guidance:
- The SBA’s PPP web page hosts many helpful resources, including a Frequently Asked Questions for Lenders and Borrowers, that is updated frequently. The last update was Wednesday, May 6.
- PPP Loan Forgiveness: What We (Think) We Know, What’s Still Unclear and What Borrowers Can Do Now on the RKL professional services firm website shines a light on the intricacies of the PPP, updated as of Monday, May 4.
- The U.S. Department of the Treasury hosts a dedicated PPP web page featuring helpful resources, including recent uploads such as FAQs about PPP loans from Wednesday, May 6, and a document highlighting nondiscrimination and eligibility requirements dated Tuesday, May 5.
Additional resources
For a look at Q2’s solutions for loan origination and loan forgiveness designed to help PPP participants, visit Q2’s SBA PPP web page.
