It was only a matter of two weeks before funds were depleted in the first round of the PPP loan program. Outside of the alleged mishandling of loan applications by some large lenders, and companies with substantial resources receiving funds, some small businesses had a hard time applying for the government assistance.
Here are 4 issues successful small businesses addressed to more easily obtain PPP funding:
Lack of Understanding – As a small business owner, you may not have known what information was necessary to apply for the loan(s). Having a bookkeeper or accountant to rely on will take the stress off of trying to figure out a complex program on your own. You will save time that is better used motivating employees and planning to navigate the crisis.
Bank Relationship – Do you have a relationship with your banker? If you do not, make sure you reach out to your banker. Do they know who you are? Have your banker’s contact information. Do they return calls and emails in the normal course of business? If not, find someone else at your bank or find another banker. Schedule a call every six months. Bankers move around. If you find a responsive banker, you may want to move with him. Even if you do not need it, apply for a Line of Credit. Many banks gave priority to clients with borrowing relationships.
Payroll Documentation – We have noticed several businesses that do not have easy access to payroll information. Make sure you have easy access to your payroll records. There are times that you will need them. Set up a system now.
Accurate Bookkeeping – Ensure your financial statements are an accurate representation of your business. Review your information monthly. If you are not sure, find a bookkeeper to help you.
We Are Ready to Help!
We can make the PPP, and other loan programs, application process easier. We have helped dozens of clients and friends navigate the loan process and secure PPP loans during the initial phase. Let us help you with your application now that additional funds are available and set up a system to make situations like this easier in the future.
Do you want to know more about your options during the Coronavirus pandemic? We spend a lot of time investigating loan and grant options for small businesses. Visit us at www.budgetease.biz to learn more.