Just applied for EDIL Grant and PPP SBA loan

Totally understandable if you have multiple employees, I’m just one man with one truck. Hopefully you can weather the storm.

 

Email I received from a random SBA bank today:

Hello All,

We are receiving emails from our graduates and other brokers indicating there is a lot of press about the number of loans successfully processed. As of now, we are told by our lenders that they don’t know one business that has actually seen the money deposited into an account.

The SBA did send an email to lenders on Saturday the 4th indicating the SBA was working on technical issues, including the crash of the online system CAFS, which is the wider on-line portal that e-trans is a part of. The amount of volume has overwhelmed the system. The CAFS system usually processes approx. 60,000 loans per year, which is a drop in the bucket compared to the volume expected and received based on Fridays activity.

The other challenge that may be worth mentioning is the lack of guidance from the SBA as to what qualifies as a complete documentation package . As we understand it, the SBA still needs to provide more concrete information to lenders as it relates to the “buyback” provisions. The buyback of these PPP loans is a major issue for lenders, as they have no interest in maintaining 1% interest loans on the books for a business that currently has no revenue (and/or is closed), included an application without a credit report, no collateral or a personal guarantee.

I tried to apply myself at Celtic, Chase, Key, Wells and B of A and was either directed to a registration page or told I didn't qualify (only actual reply was B of A). The banks are trying to do a smaller number of loans initially to see if the process is working or not.

There is a ton of misinformation out there and the real truth about this process hasn't hit main street yet. We are staying in touch with our SBA lenders but at the moment our lenders are not taking apps right now and awaiting further information from the SBA.

All of these stresses occurring at the same time created chaos. The issues noted above are short-term and will be resolved, but it will take time. I would expect to see some stabilization in the coming days to perhaps as much as a week.

 

I read wells/fargo has stopped taking apps. on those type of loans?

 

Yes. Too many applicants

 

The bank I do business with emailed today, saying the SBA applications will be accepted by the SBA starting Friday the 10th.

 

Filled out PPP thru chase this past Saturday the 11th and haven't heard nothing, not even a email confirmation that they recieved my application. I'm hearing the PPP will run out tomorrow.

 

It did run out as of closed business day today a couple of hours ago officially.

No money honey no love you long time sort of thing.

Wouldnt be surprising to see business people go out of business due to no funds while papers rot in the bank desk too long waiting on more money.

Its like trying to get a dollar out of a miser at home at the kitchen table. Pry it loose yourself and see.