On or about April 16, 2020, SBA PPP loan program ran out of funds and SBA stopped accepting new applications. In response, SBA approved lenders, including First Bank, stopped submitting new loan applications.
As of the writing of this email, Congress has not approved additional funding for SBA PPP loans. There is a bill pending before Congress to provide an additional $250 billion; however, there is disagreement on attaching additional funding, i.e., $100 billion for hospitals and $150 billion for state governments. Both political parties, Republican and Democratic, have publicly stated commitment to negotiating bill to approval funding and sending to the President for signature.
NOTE: Initial funding of $349 billion ran out in about 2 weeks. An additional $250 billion of funding will most likely run out as quickly. It is estimated at least $1 trillion is needed to adequately fund small business PPP loan requests.
On the assumption funding will be approved at any time, CPS recommends too continue processing loan applications. If you have not completed loan application, complete and submit to your lender or myself for submission to a lender immediately. If you have completed your application and submitted to a lender or I have submitted on your behalf, assure business account opened and funded. The best strategy at this time is to submit PPP loan applications with a lender ready for processing once funding is approved.
For CPS clients with applications submitted to First Bank, please confirm with Ana your company has opened and funded a business bank account. If not, contact Ana and cc myself for instructions.
As always, any questions or concerns contact myself at your convenience.
Frank Mario Castellon, CPA, CGMA, MST
Castellon Professional Services
71 Stevenson Street, Suite 400, San Francisco, CA 94105
2615 El Camino Real, Santa Clara, CA 95051
6265 Highway 9, Felton, 95018