If you haven't applied for PPP second draw...
If you’ve taken my advice and are waiting to apply for your PPP second draw, I’ve got lots of updates:
The 2-week small employer window: The new two-week break in loans is actually pretty good for camps. That should line you up for your ideal loan start date. You can apply now during this window, and your loan will start to be processed once the window ends, on March 8th. And don’t worry, this will only further deflate the amount of PPP loans being processed and there will still be plenty of money after the 2 weeks is over. (As of Sunday, $140B of $284B has been sent out for loans).
That said, many camps will still be able to apply. It’s not entirely clear if the number of employees of the firm is the current number of employees or the average number of employees in the payroll base period. If it’s the former, most camps can still apply.
You should expect it to take 12-18 days from loan application until funding.
Last week, I noted that camps were finally getting their first loans increased, but typically with a calculation that was less generous than we hoped. Most lenders are taking the 12-week base payroll period and dividing that by 3 to get the average monthly payroll. To be accurate, it should be divided by 2.75, not 3. Fortunately, thanks to a tip from a camp director, I was able to find a lender using the more generous formula (which increases loans 8.25%). For a camp like ours, this increases our loan by about $50k.
The American Institute of CPAs and Biz2Credit (the largest PPP loan processor) have a joint platform for CPAs to submit loans. Any CPA can sign up on this platform to submit loans on behalf of their client. This platform uses the more generous calculation for seasonal employers.
I have coordinated with my father’s accounting firm to submit loans through this portal for anyone that needs help. It’s free - accountants are not allowed to charge fees to customers for helping with PPP loans (instead the lender must pay them a fee).
If you would like to do that, email me or Clive Gurwitz at clivecpa [at] gmail.com.
Finally, I’ll be offering office hours again this week on Friday at 2pm EST and hosting a webinar for ACA next Wednesday.