We have heard from several of you over the last couple of days with specific “issues” your PPP lender is raising. For instance, “my banker says there’s no provision in the loan agreement for any forgiveness portion.” One email from a lender said, “The use of funds is for payroll. If you use the proceeds for other than payroll, the forgiveness will go away.” Banks keep requiring you provide 1099s the practice issued, although that’s clearly in violation of the regulations. And the list goes on.
Our response to all of these things: They mean well, but they just really aren’t well versed in the details. And it’s no surprise! They were forced to have a program up and running in a matter of weeks that was intended to dole out billions of dollars to most of the small businesses in the country. And to add to the difficulty, they weren’t given the rules until the last minute; rules which, we might add, are still being finalized and changed! They are treading water just to keep up. The end result is that some of what they’re saying is simply not accurate. Continue to reach out to us for clarification when you hear something that gives you concern. But don’t be surprised if what you’ve been told is in error.