We often start the day with the same question from multiple clients stemming from whatever latest communication is circling around the community.  We would call this our Question of the Day, but the reality is it’s probably just the Question of the Hour!  The Phase 3 bill, aka the CARES Act, is hoped to pass late today.  Indications are it will allow a forgivable loan for 2.5 times your monthly average over the last 12 months for payroll, employee insurance, retirement, rent, loans and utilities.

And the question is this:  What documentation should we be gathering in preparation for the application process?

Answer:  There is a lot of speculation going around but the reality is, it is still unknown.  Common sense says you probably are going to have to gather documentation related to those expenses like payroll registers, 401K reports, etc.  There is no harm in doing that.  But we talked to 6 bankers yesterday and the response was unanimous.  None of them know what documentation they are going to ask for.  Is there any harm in getting ready with whatever you can?  No.  Do you have time to do it right now?  Sadly, yes.  Might you spend time gathering items that were unnecessary or unsuitable?  Sure.

Please be assured that as soon as we have any substantive information we will pass it on you.

And the follow-up question is inevitably:  “How long will it take to obtain the funds?”  The answer has varied anywhere from 10 days from the start of the process to 45 days.  That’s a big range and a scary timeframe.  Most likely it will be somewhere in between.  Keep in mind SBA is overwhelmed already and now this new program is on their horizon.  They are pulling in additional commercial banks to help with the application process and those banks are having to develop the necessary platforms.  They are working feverishly on it as we speak.