Hi everyone this is Dr. Nitin Chhoda and in this training video I'll talk to you
about the SBA PPP loan application, how to initiate contact with the lender, so you
can get your stimulus money from the CARES act from the paycheck protection
program that's being administered by the Small Business Administration in
coordination with the US Treasury. Now in my previous training I talked about how
to find a lender and in other trainings talked about the differences
between the EIDL and the PPP program so make sure you check those out
so you have some foundational information before you sort of dig deep
into the actual process and roll up your sleeves. Now the way this works is when
you initiate contact with the lender one of two things is going to happen. ONE the
lender is basically going to send you an email saying all right here are next
steps or TWO the lender will say wait a minute
I am overloaded I'll get back to you give me a little bit more time. Now
generally you will find that the bigger companies, the bigger lenders - the Bank of
America's of the world, the Wells Fargo, Chase,
companies like that. Generally each bank is a little bit different
because each bank is is operated independently. They will
generally reach out to you and say okay here's your next step here's what you
need to do to submit documents. Usually, in my experience is taking
anywhere from 4 days to as much as 10 days. Now there could be other
credit unions or other institutions that simply get back to you after 7-10 days
and say wait a minute we're still processing we need a bit more time
Now I know this can be a little frustrating because you know we need the
funds quickly. A lot of us needed the money like yesterday but
I'm here to tell you the reality as of this moment.
I'm hoping by the time you watch this things have improved and and you know
the process is much faster but this is how things are today at the time I'm
filming and recording this video so I got I mentioned earlier in the previous
training that I got an email from Bank of America and Bank of America basically
said small business clients with the business lending and a business deposit
relationship can apply a pre-existing business relationship with us could be a
Bank of America business credit card a business loan or a line of credit now
they also say that small business owners who do know
have a business lending and business deposit relationship with us should
contact their current business loan provider now again I want to tell you
this is what Bank of America is doing I am NOT saying that every bank is doing
this and this needs to be done this video is intended to provide you with
general information about my experiences so that you can be more educated when
you dive deeper into this process it's not legal it's not financial advice you
are responsible for your own decisions and this again specifically from Bank of
America okay all right so let's move on Bank of America says all applications
information and correspondence about the Paycheck protection program at Bank of
America will occur online and through email including the application process
submission of required documents and follow-up correspondence. I know this by
the way because I actually did this I uploaded all my documents through a
portal called an intro links portal through the Bank of America website but
you have to wait for Bank of America to email you and request you to access
that portal. Now again Bank of America says you must have a pre-existing
business lending and business deposit relationship with Bank of America as of
February 15, 2020 they give you a list of criteria that need to be
followed and this web link which I'll include in the description below is
important they ask you to go to a website and on this email is
BankofAmerica.com/sbresources
beginning on Friday April 3 so you can go to the website check it out and
if you have a pre-existing relationship just as Bank of America wants that you
should be able to apply but even if you don't you can get a sense of what that
Bank is doing and hopefully your bank or a bank that you work with is is
streamlined inefficient. Now I'm not saying that Bank of America is the best
Bank to work with or is the only bank that does this I'm just telling you
what's been my experience going through the paycheck protection program with
them okay now this is important and I'm going to a sort of dig deeper into this
in the next training video the documents that you need to submit for the Paycheck
protection program Bank of America says that these should include now the word
include means that there's a bunch more documents and I'll get into that as well
these include 2019 payroll that's total payroll for the full year 2019 by
employee as reported to the IRS 2019 independent
contractor cost they they apparently want to know that as well which is
interesting because you cannot include 1099 in the average monthly payroll
calculation they want a payroll report as of February 15, 2020 so they need all of
that information that micro medical goes on to give you some additional criteria
under the cares Act which which is the criteria that has been set forth for the
eligibility for the Paycheck protection program and they talked a little bit
about the economic injury disaster loan as well. Now again the economic injury
disaster loan like I mentioned in the previous training is directly through
the Small Business Administration and by the way if you have any questions about
the economic injury disaster loan good luck getting through to the SBA on the
phone you'll be on hold for at least I would imagine at least a half an hour
probably probably several hours and today when I call them they basically
said as long as you have an application number there's nothing else we can tell
you just wait to get an email from us so there I probably just saved you a couple
of hours if you applied for the EIDL loan also on a side note if you applied
for the economic injury disaster loan the forgivable advance is up to $10,000
that doesn't mean you will get $10,000 it's up to $10,000 and also the Small
Business Administration there have been some emails and some reports coming out
that the Small Business Administration will give you $1,000 per employee up to
a maximum of $10,000 as a forgivable loan advance. Check directly with the
Small Business Administration but this is something that I've heard through the
grapevine again you'll need to verify this with the Small Business
Administration website so Bank of America said the NSBA 7a lender and so
on so forth. Now what happened when I actually submitted my application
through the through the Bank of America paycheck protection program website I
got an email from them that you can see on your screen here the email said
gather documentation about your small business that may be needed including a
payroll report we talked about that look for additional communications about your
loan application and I actually did end up getting that additional communication
just a few hours ago and I'm going to go through that with you as well so you can
organize those documents as well and it says please don't proactively deliver or
send documents to your financial center. Now this is important if you're working
with a banker or someone at your local branch what I've been told by my
personal banker is that they don't have that much information at Bank of America
anyway and that this information is going through a central
division if you will so what that means is you probably by watching this YouTube
video and by going through these links and by watching my other trainings or
the EIDL and the PPP program you probably know more than your local
banker ok so what you should do is don't waste your time talking to your local
banker if you know more than your local bank and I think by now you can decide
for yourself in other words spend time in in coordinating or reaching out to
the right division at the bank that you work with and and then initiate the
Paycheck protection program most likely it's going to be online as opposed to
expecting your local banker to return your call because frankly they have an
impossible job. They're trying to find out information as fast as you are and
in fact send this video to the local banker that'll probably you know get
them up to speed as well. Now here's another email that somebody I know got
from another lender and that lender interestingly enough basically said
Thank you for contacting First Home Bank regarding the Paycheck Protection
Program as you are aware the program has generated extraordinary interest and
this is the important part due to overwhelming demand we have suspended
new applications for PPP loans. You know it's not ideal but what are
you gonna do if they are overloaded and they're smaller banks that's what
happens we are working tirelessly to process existing loan applications
however we are still in the process of reviewing the volume of submissions
received through our online platform that's basically them saying we're
overloaded and we're not going to take any new applications we're just going to
work on the stuff that we have as such you should be aware that your loan may
not be processed in a timely fashion in fact they go on to say should you desire
to apply to another institution you can just send us an email saying you know
you're going to go to another institution that tells you how
overloaded the system is so again going back to what
should do about this know that when you reach out to a lender the lender will
probably get back to you and hopefully a minimum of 3 to 4 days a maximum
of 8 to 10 days depending on their depending on how busy they are and
ask you for more documentation which by the way
Bank of America did and I'll create another training to walk you through the
documentation they requested so again subscribe to the channel you'll get that
information as soon as I release it which will be very very soon
number two the the lender might just say "Hey I need a little bit more time I'm
going to get to it and I'll let you know in the meantime if you can't wait then
go somewhere else" then again that's not the solution to what we need but that's
just the way things are as of right now my guess my prediction is that as the
coordination between the US Department of Treasury and the Small Business
Administration increases as they communicate with banks about the precise
guidelines banks will feel a lot more comfortable doing these kinds of
programs in fact more importantly the limits for the banks need to be
increased more money needs to be made available to the banks which by the way
in addition to the additional $349 billion
as an additional $250 billion that is probably is
going to be passed very very soon so all of those things are happening and for
the money to eventually trickle down from the banks where the banks feel
comfortable handing out the money to the small business owners like yourselves
that's that's simply going to take a little bit of time what you can do in
the meantime is be aware of what's going to happen so you don't get any nasty
surprises that was the purpose of this training. Start to prepare the documents
which which I'll talk to you about as well and then and then you know just a
wait, wait to hear back from them and in the meantime do everything you can do to
stay afloat I am doing you know again a lot of research goes into these
trainings I appreciate you watching. Please click like so that so that you
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much don't forget to check out the other videos that are also linked below and
we'll see you in the next video. Thanks!