Today’s The Day–Possibly The Last Day–To Apply For Free Government Money. Here’s How And Where To Get Your PPP Or EIDL Forgivable Loan.

If you haven’t yet applied for a PPP (Paycheck Protection Program) loan, you may still have a shot. However, that shot is likely going to miss its target if you don’t act now–and I mean now.

Let me explain: The initial iteration of the program ran out of its $350 Billion of funding almost immediately, and small businesses that weren’t funded initially have been cooling their hills since then. Congress, happily, has since reloaded the program with billions more dollars, which become available to the online system used by banks Monday morning at 10:30 a.m. Eastern time.  

So, please: If you need some of that money, get your applications in now. 

Before I go any further, I need to caveat everything you just read, and everything you will read in the rest of this article, quite vehemently. I am neither a financial nor a legal professional. (My subject matter expertise is quite different: I’m a customer experience expert consultant and I emphatically do not do financial consulting.)

The information in this article is gathered from sources I believe to be reliable, but I may be wrong about this and/or, as a layperson, I may have misinterpreted it in my summary below. Furthermore, much of the information from the government itself is still unclear or in flux, so that’s another variable to be aware of.

Where not to apply

Where should you apply? Well, first, here’s whom to avoid: the big banks, most specifically (I have heard), Chase, which has developed a, shall we say, spotty reputation for how it handled applications initially, and which is now brazenly warning even existing applicants that they should probably look elsewhere.

Where to apply

To give credit where credit is due (see what I did there?), smaller regional banks and credit unions did a great job the first time around, and would be where I would suggest you go this time around as well. However: they are, by and large, only accepting applications from their existing banking customers, and, like everyone else in this landscape, they expect any new money to evaporate soon.

If you don’t have an existing relationship with one of these regional banks or credit unions, are you out of luck?    

With them, probably. But, in a heartening development, fintechs (online not-quite-banks) have been approved to give out PPP loans as well.   You can apply right online with

• PayPal

• Square Capital (the Square cardreader/merchant services people). Note: this link only works if you have an existing account with them.  

• Quickbooks Capital

What else do I need to know about the PPP?

• If you apply for more money than you actually can use on payroll in the 8 weeks after you get the loan, it will be turned into an extremely low interest loan, rather than being forgiven. The rule of thumb here is an important one: don’t bend too far over backwards to try to get a huge PPP loan; sensible business operations are what matter most in this challenging time.

•   However, there are intelligent ways to make sure you use as much of the loan as makes sense, in ways that can achieve forgiveness. Once you get your loan, be sure to read this article on how to have the best shot at 100% loan forgiveness.

Are there programs other than the PPP that I should be applying for?

Definitely. First off, the EIDL (Economic Injury Disaster Loan).

While the SBA website for this currently says that there has been a lapse in funding, the funding should be restored presently. This money is quite wonderful in that there is no expectation of repayment.

Also consider local and state programs, whether COVID-19 specific or pre-existing.

Finally, there are some novel opportunities out there. For one, Facebook is giving grants to small businesses within the locales where they have offices.

For further reading

This is the fourth article on government loans that I’ve written recently.  Again, all of these articles are based on my understandings/my interviews with professionals. I am not, myself, a financial or legal professional.

• For a broader overview, read this.

• For a bit more info on the fintech aspect, read this.

• And, again, very important: Once you get your loan, read this for information on how to achieve as close to 100% loan forgiveness as possible.