Baker Boyer has made the difficult decision it has reached its maximum capacity for processing applications before the second round of funding lapses for PPP loans. Therefore, we will no longer be any new PPP loan applications. Please read this statement for more details about this decision.
During the initial phase of the program, in which $349 billion lasted just 12 days, Baker Boyer successfully secured PPP funding of over $33 million for nearly 200 clients in Yakima, Tri-Cities, and Walla Walla. In this second phase, the 125+ clients with existing pending applications will be provided with all the assistance possible to get them through the process and to being funded.
HERE’S WHAT TO EXPECT:
- If your Application is complete: If you have confirmation from your Advisor that your application is complete, your funding request will be submitted to SBA as soon as possible.
- If your Application is in development: Please carefully review all forms and checklists in the packet sent to you by your Advisor. Work with your accountant to ensure you have compiled complete and accurate documents and data needed to process your application.
NOTE: if you would like to send us your documents via a bank portal please reach out to us before application submission. Otherwise, we recommend sending your information encrypted for confidentiality purposes.
About the Paycheck Protection Program (PPP)
The American Bankers Association just released a detailed overview of the Paycheck Protection Program (PPP). Below is their succinct summary of the program:
"On March 27, 2020, President Trump signed P.L. 116-136, the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. As part of this nearly $2.2 trillion aid package to fight the COVID-19 (coronavirus) pandemic, Congress appropriated approximately $349 billion for the creation of the Paycheck Protection Program (PPP). This program provides payroll assistance for the nation’s nearly 30 million small businesses, and select nonprofits, in the form of 100% guaranteed loans from the U.S. Small Business Administration (SBA).
Simply put, eligible borrowers work with lenders to apply for and receive, loans up to 2.5 times their average monthly payroll expenses for the prior year. Loans, which can be issued between April 3, 2020, and June 30, 2020, will carry a 1% interest rate with a two-year term. Loan payments are deferred for the first six months of the loan. Additionally, PPP loans contain a forgiveness process, allowing up to eight weeks of covered expenses, including both principal and interest, to be forgiven for the borrower with no tax consequence (i.e., forgiveness of indebtedness income is waived). Any remaining balance after the loan forgiveness period maintains a 100% government guarantee while the borrower makes payments. A lender will be able to sell these loans into the secondary market once the funds have been disbursed."
- Governor Inslee is offering a new Working Washington Small Business Emergency Grant program to assist small businesses impacted by the COVID-19 outbreak.
- Letter from Mark Kajita to business owners – April 3
- Initial statement of commitment to business banking clients in response to COVID-19 – March 23
- Coronavirus Relief Options available from the SBA include this PPP program, as well as EIDL Loan Advance, SBA Express Bridge Loans, and SBA Debt Relief.