OAAA is following an OOH company through the small-business loan process, in order to explain it to others. See the first post here.
In our second post, the OOH company prepares to fill out an application. This installment provides insights from the front line about how to apply. Other stimulus help is available to larger companies.
– Companies with 500 or fewer employees can apply for SBA funds (Small Business Administration) up to 2.5 times payroll
– These SBA loans (“Payroll Protection Program”) convert to grants if certain conditions are met (to retain employees)
– Click here for an application; consult your bank or lender
From the field (April 2, 2020), an OOH company prepares to apply:
How to submit an application?
“Our bank has an online portal for existing clients; it will send me a link to an online SBA Payroll Protection application, probably tomorrow (Friday, April 3).
We will complete the form online and submit via electronic signature.”
Is the application complicated?
OOH company: “It’s pretty straight forward.”
What about conditions?
OOH company: “The 75/25 caveat (to quality for loan forgiveness, at least 75 percent of the SBA funds go to payroll) seems to fit our company.”
Two other pieces of advice:
1. “Note that a company owner with 20 percent-plus ownership stake needs to sign the application form.”
2. If you don’t have an online option (to apply), print out the form — now — and contact a lender or bank to get help processing your application.