On Wednesday evening, the $349 billion Paycheck Protection Program (“PPP”) fund was exhausted. Washington is considering additional funding but until that occurs, banks cannot secure authorization for any new PPP loan requests. If you received notice that your loan was authorized, your funding is secured. If new funds are allocated, Platinum Bank will process the PPP applications for the few existing clients who were not able to secure funding before the pool ran dry. Currently, we are not accepting any additional applications.
As of today, we still do not have the final Small Business Administration rules on how the forgiveness process for PPP loans will work. Many of you have asked for this guidance and we understand the lack of clarity is frustrating. There have been indications the SBA is planning to create a spreadsheet to assist PPP borrowers with calculating the forgiveness amount. There are many examples of these on-line. To avoid creating further confusion, Platinum has elected to not create a forgiveness spreadsheet until additional clarification is received from the SBA. Once Platinum Bank receives the details about the forgiveness portion of the PPP program, we will immediately provide that information as well as direction on the submission process for your PPP loan forgiveness to Platinum Bank.
Following are specific actions you can take now that will allow you to streamline your PPP loan forgiveness process.
- Once the PPP funds are disbursed, the eight-week measurement period commences in which you are required to spend 75% of the funds on covered payroll cost and 25% on covered rent, utilities, and mortgage interest costs. Platinum Bank recommends all recipients of the PPP funds review the FAQ’s published by the SBA and Department of Treasury to assure your compliance and calculation of funds. If you have specific questions about calculations, we strongly recommend you reach out to your accountant.
- Maintain meticulous records of how the PPP funds are being used. As we do not know what detailed records will be required by the SBA, we suggest keeping thorough back-up records for how your PPP funds are being spent.
Your Relationship Managers and the entire Platinum Team are here to assist you as needed.