Bank of America is the First Big Bank to Accept
SBA Paycheck Protection Program loan applications. Small businesses are desperate to access loans. But there’s a problem; most banks aren’t ready to lend. On Friday, the Small Business Administration’s Paycheck Protection Program loan applications were expected to be open and ready for small businesses around the country to get emergency, forgivable loans intended to help them retain employees amid the COVID-19 crisis. But as of Friday morning, only one big bank managed to start accepting applications: Bank of America.
As of 3:00 pm today Wells Fargo Bank only has this message posted on their site: Wells Fargo is working as quickly as possible to be ready to assist small business customers as part of the Paycheck Protection Program (PPP). We will update our Paycheck Protection Program website as soon as possible, so we encourage customers to check our website often. Applications will only be accepted via our online portal to ensure our small business customers get the support they need as quickly as possible. When we are able to take applications, you’ll find a link to that application on this page so check back often.
What Other Businesses Are Doing to Contain Costs
During the Pandemic. As concern over the effect that COVID-19 will have on their businesses escalates, North American employers are eyeing a series of cost-containment strategies that include hiring freezes and, to a lesser extent, wage freezes or delayed raises. Companies’ highest priorities remain the physical and financial wellbeing of their employees. However, amid heightened concern over the impact the virus will have on their operations, companies have started to implement some of the same cost control measures we saw during the last recession.
Did You Know?
Watch out for scams. Many websites and emails are popping up offering, for an upfront fee, to process the Federal government Payroll Protection Loan and/or the SBA Disaster loan on your behalf. Most of these purported financial “Robin Hoods” and really wolves in sheep’s clothing.
According to the SBA: “You can apply through any existing SBA lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating.” You should consult with your local lender as to whether it is participating.
Stay away from the predators, especially those requiring an upfront fee for their service.
Emergency Child Care Assistance Program Launched. Administration officials with the New Jersey Departments of Children and Families (DCF) and Human Services (DHS) yesterday issued guidance for the Emergency Child Care Assistance Program for children of workers designated as ‘essential’ under Gov. Phil Murphy’s Executive Order 110.
Through this program, the state will help support child care costs for essential workers. In order to participate, essential employees who wish to utilize emergency care services must complete an online registration form available at www.childcarenj.gov/emergency.