SBA Disaster Loan Funds Exhausted

UPDATED: On April 21^st a new round of funding became available for the PPP loan program. The EIDL program is also still accepting applications. The deadline to apply for the PPP remains June 30^th.

As you may now be aware, the US Small Business Administration (SBA) announced today, April 16^th, that Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Funds have been depleted and applications are on hold.

Congress is in the process of negotiating a new relief measure that may include a pool of additional funds for these programs. AAFCPAs will keep you informed as details emerge.

What now?

For businesses who missed out on this first round of appropriations funding, AAFCPAs advises clients to contact your bank to inquire as to the status of any pending loans, additional loan options, or if applications may be submitted and held for a potential subsequent round of funding. Additionally, there are other relief options to consider under the CARES Act. Please contact your AAFCPAs Partner to discuss these options as they relate to your specific facts and circumstances.

For businesses who successfully applied and received funding through the SBA’s disaster loans program, AAFCPAs is available for guidance on calculating debt forgiveness and tracking your qualified expenditures in accordance with loan terms and conditions.

CYBER SECURITY ALERT: Hackers Use SBA Loan Application as Bait

AAFCPAs has received reports that businesses have been targeted by cyber criminals masquerading as banks, sending well-disguised, socially engineered emails that say, “Additional information needed for your Paycheck Protection Program application.” The campaign includes well-designed web pages that request your banking login credentials. Clients are urged to remain vigilant, as the coronavirus pandemic continues to provide an occasion for criminal hacking. Contact your bank representative directly if you receive an odd request for further information.

If you have any questions or need assistance, please contact Courtney McFarland, CPA, MSA at 774.512.4051, cmcfarland@aafcpa.com; or your AAFCPAs Partner.