The U.S. Small Business Administration (SBA) announced on Thursday morning the Paycheck Protection Program (PPP) funds of $349 billion have been depleted. More than 1.6 million applications had been approved in just under 2 weeks.

Thousands of business owners must now wait as the government’s lending program is on hold. As Congress, Treasury, and the President negotiate another $250 billion into the program, here are a few tips on how to prepare in the meantime.

  1. If you have already submitted an application, check the status with your bank. If your loan has been approved, you should have received an email including the SBA loan number called an “e-tran number.”
  2. If you have not yet submitted an application, prepare to apply. For the first wave of applications, CDH was able to help business owners prepare all necessary information to complete the process. The loan approvals are first come, first serve, so get started as soon as possible.
  3. Consider alternatives to the PPP. Favorable tax credits are also included in the CARES Act which may increase cash flow in the short term. Our tax experts are available to help you analyze eligibility.
  4. Review your business expenses. Most businesses have already implemented or are considering cost reductions during this crisis. Our advisers can help examine sensitive cost reductions and project cash flows while considering employer regulations.

As we await the fate of additional funding, we encourage you to prepare for the loan application as soon as possible. As always, stay safe and please reach out with any questions or concerns regarding the loan application process, tax credits, or cash flow analysis. We are here to help and support you as we work through these unprecedented times together.