As you all know, the first iteration of this program left some on the sidelines, others waiting and nearly all of us confused at times with the continuing clarifications of how to interpret all the provisions. We had many clients frustrated with getting approval and would like to remind everyone that we created a special team to help facilitate PPP loans.
PPP loan application guidelines
Optima is ready to help get our clients with their loans. There are still details of the program that need to be defined before applications can be filled out. Here are some of the details we know:
The loan amounts can be funded as low as $5,000. This dramatically increases the number of clients eligible.
To be eligible, a client must have had at least one quarter of revenue in 2020 be at least 25% lower than the same quarter in 2019.
At least 60% of the new loan must still be used for payroll and payroll-related costs. The payroll periods for calculations still needs to be defined.
There are additional expenses, such as PPE expenditures, that are reimbursable.
Certain accounting fees will be reimbursable, so the work to prepare the PPP loan should be covered. Other regular accounting expenses still need to be determined to be reimbursable.
Optima was very successful during the first-round of PPP by processing loans through a Louisiana Credit Union. We had turn-around times of 24 hours for approval and funding within 7 days. We are again partnering with this credit union which is participating in this second-round. Our goal is to reach out to all our clients that are eligible for the Loan to work with us and submit their application to the credit union.
Why Businesses Should Work with Optima for their PPP loan Application
Our bank was quick with filing and getting approval
Our bank has a separate fund to draw from so it does not have to compete with the big banks
Our bank required the minimum amount of documentation to process the loans
The Optima Team worked with our clients to ensure all the documentation was correct
For returning clients, their baseline information is already in the system so minimal documents will be required for the loan
For new clients, we will need all the “establishing” documents: tax returns, articles of incorporation, etc. when submitting the application.
We have an Optima Team ready to help prepare the applications for submission. If you are interested in obtaining a PPP Loan we can help you file the application.