Sensible and essential information for securing funds in the latest round of the CARES Act program, including eligibility, calculations and misunderstood risks within the Loan Forgiveness Process.

Featuring Jennifer Schuchart, Market President for First Horizon Bank

With this being the second round of PPP funding, as a small business owner, you’ve probably been hearing about the program’s eligibility requirements and benefits ad nauseam. In this webinar, Jennifer focuses more on risks, common errors and measures each business should take when applying for the loan.

Some risks associated with the loan:

• Applicants are required to certify that funds will only be used for covered expenses
• Knowingly using the funds for unauthorized purposes may lead to charges of fraud
• If used for unauthorized purposes, the loan can be be converted into a recourse liability

Common errors made when filling out the application:

• Incomplete and/or illegible applications – Can cause significant delays to processing applications
• Missing Forms – Include payroll forms, IRS Forms 940 and 941 – these are necessary to validate the loan amount.
• 4-Digit Zip Code Extension – The SBA requires the 4-digit zip code extension. 99.99% of applications do not have this information and the lenders need to look it up themselves.
• NAICS code – This can be found on the front of your federal taxes.

Resources from the US Treasury

• Paycheck Protection Program Overview; Information for Borrowers and Lenders; Program Rules
• PPP Quick Overview PDF

Resources from the Small Business Administration

• Coronavirus relief options
• PPP FAQs for lenders and borrowers
• Locate eligible PPP lenders