News Alerts from
CARES ACT - PRELIMINARY INFO FOR SMALL BUSINESSES
On March 27, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act into law. This $2 trillion-plus bill will serve to provide financial relief to small businesses and individuals adversely affected by the coronavirus pandemic. A key component of the CARES Act is the Paycheck Protection Program (PPP).
I want to update all of our readers about the PPP, but first – and most importantly – all of us here at Holtmeyer & Monson wish all of you, your financial institutions, employees, and your families the best during this very difficult time. Please be well!
The Paycheck Protection Program
The PPP requires the SBA to write the rules that approved lenders will need to implement in order to initiate the application process. This rule-writing process could take 2 to 3 weeks – and may be available in mid-April. Applications may not be finalized until the rules are written and complete. Due to the urgency for getting this program operational, much misinformation is floating around. We at Holtmeyer & Monson are as close to the process as anyone in the industry, and we try very hard to notify our clients and readers about credible information as soon as it becomes available. As such, we are providing the most current “best estimate” of the program, as prepared by the U.S. Senate Committee on Small Business & Entrepreneurship. You will find it at THIS LINK. Please review this for informational purposes, but keep in mind that the SBA HAS NOT YET FINALIZED THE RULES, OR THE APPLICATION PROCESS.
Holtmeyer & Monson’s Response
We have been inundated with calls from lenders seeking assistance in processing PPP applications. Unfortunately, we cannot meet the needs of all inquirers. Throughout our 38-year history, we have prided ourselves on adhering to a “best efforts” operating model. At this historic time, we have an obligation to give priority to our existing clients and affiliated partners, including the Independent Community Bankers of America.
The following are a few of the changes we are making internally to meet the unprecedented volume that we are expecting:
- Development of an enhanced software platform, which will allow for efficient application approval and loan closing
- Increase and reallocation of H&M personnel
- Streamlining of all processes to maximize efficiency
- Development of a Preliminary CARES Act Loan Application Checklist – which is subject to change, but designed to help borrowers and lenders prepare in advance for submitting applications (See below)
We are also in the process of developing a training and informational webinar that will enable us to get program details delivered to lenders in the most efficient manner. Be on the lookout for an email invitation from us to register for the webinar.
Start Preparing Materials Now
Due to the expected tsunami of anticipated applications, and the short shelf life of the SBA program, H&M personnel will be asking lenders to have their applicants begin gathering the information listed on the Preliminary CARES Act Loan Pre-Application Checklist now—in order to be prepared when the application process begins. You can find the checklist here.
We also greatly appreciate your patience during this program. There may be times when we are not able to respond in our normal timeframe. We are all experiencing increased stress, and it is critical for you to understand that Holtmeyer & Monson – as always – will provide our patrons with the highest level of service in the industry.
Thank you for your attention to this critical matter, and we will keep you advised as the situation and programs develop. Please contact Arne Monson, President, or your Account Executive, with any questions or clarifications.