Paycheck Protection Update for 4/7/2020

Unfortunately there is still not a lot of clarity coming out of the SBA with regard to the loan calculations. At this point we are applying our own interpretations for selected items which thus far seem to follow the general consensus of many advisors and the financial institutions.

Some of you may have heard that the funds are being allocated quickly, which has added to the concern that there will not be sufficient funds available for all businesses. In particular, Wells Fargo had a cap on the funds it could lend through the program and this cap was exceeded over the weekend. Please keep in mind that Wells Fargo had a limit placed on their funds available by the regulatory authorities as a result of their history of establishing bogus accounts. Their customers are now scurrying to find an alternative source of funds.

Along those lines, one result of the SBA program is that many businesses are finding that some lenders seem have been very proactive and responsive, while others have not been. Moving forward it will perhaps be more common for businesses to have banking and lending relationships with more than one financial institution.

With offices in Williston and Rutland, Davis & Hodgdon Associates CPAs is now assisting small business clients across Vermont by handling their loan application. We are providing clients with peace of mind as we navigate through this crisis and the constantly evolving business environment that is becoming our new normal. For more information about the COVID-19 business response services now available call our office at 802.878.1963 (Williston) or 802.775.7132 (Rutland) today or click here.