On March 31st, I wrote a post regarding the newly created $349 Billion Paycheck Protection Program, now referred to as PPP. It now seems that there were more business owners who applied but did not receive funds, than those who were successful.
Much has been made about large companies that were granted loans, many of which, at first blush would not seem to meet the qualifications. Rather than spend time on that, suffice it to say that the rollout of this program was big-time problematic. There now appears to be light at the end of the tunnel for those left hanging, in the form of a new $310B secondary round of PPP that has been approved for those that qualify, but were unable to receive the loan / grant the first time through.
Here is the hint; the business owners I have identified (friends and clients among them) who were successful in round one, were – with very few exceptions – assisted by a local or regional type bank, as opposed to a bigger national scale bank. Is there a correlation? While I can’t be certain, I can tell you that we have relationships with some of the regional banks that appear to have cracked the code, and are still eager to help. So, if you don’t feel like you are getting the backing you deserve, feel free to reply to this email and let us know, and we’ll do our best to connect you to someone who can help make it happen.
In addition, we continue to actively work with companies that need additional financing beyond their bank facilities and what they are getting from the government. Many private funds (both equity investment types and credit types) still have “dry powder” and are looking for ways to deploy it through investment in private businesses. If you feel you might have that need, we would be happy to discuss this with you as well.
Dan Darchuck | CEO
