In forecasting what’s coming next regarding the federal government’s Paycheck Protection Program (PPP), it is important to understand the lending environment. We thought it might be helpful to look at the lender’s role, why there may have been so much lender confusion.
Nearly three-quarters of the loans went to the smallest of companies—those needing $150,000 or less. While slightly more than a quarter of a point of these loans went to the big players, those big borrowers took slightly more than 9% of the available funds.
At reported application rates, the $349 billion will be gone within a few weeks, and even if an additional $251 billion is approved by Congress, it is unlikely that will last past the first week of May. Once lenders have completed issuing these loans, expect them to turn their attention to the forgiveness with a fine-tooth comb.
This article is a sequel to our extremely popular COVID-19 Crash Course for Small Biz Payroll Protection Plan Applicants
It is the third in a series of coronavirus bills and likely not the last, but so far it is the biggest and most misinterpreted.
Once you have modeled this out, you will have a sense of the length of your runway—how far you can run with no new revenue. Burn that figure into your brain. Use it as a reference point for business decisions that impact cash flow. Ask yourself whether the current decision you face now will shrink or expand your runway tomorrow.
Recompose perfected a process where the recently deceased body is cleaned, wrapped in a shroud, and placed in a tube on a soft bed of wood chips, straw, nitrogen, and alfalfa sprouts.
Empty storefronts don’t employ staff; there’s no one to purchase coffee, gas, lunch, or snacks from local merchants.