Don't Delay: There is Still Time to Submit an Application for a SBA Paycheck Protection Program Loan

The SBA Paycheck Protection Program (PPP) is a bold and timely reaction by the federal government to the present crisis. It provides $350 billion in relief to small businesses and nonprofits.

The popularity of this program has been so great that the first round of funding ran out on April 16, 2020. This is less than two weeks after the money was made available through the Small Business Administration.

There is a chance that Congress will approve a second round of funding, an additional $250 million. To have a chance at obtaining a piece of this funding for you or your charity, you need to take action now to keep or establish your place in line. 

PPP will give you the resources to pay salaries and benefits even as charitable contributions continue to decline. I'm sure many charity leaders and board members are anxious to benefit from this program. They do not want to be left out of what may be a once-in-a-lifetime deal that will keep their churches, charities or schools alive.

After all, the loans that will be given out can be completely forgiven. It will be like having an ATM in the lobby of your institution spitting out money all day long.

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For most of us, the problem is we are not sure where to turn for help, whether we are eligible, if we are too late, or how to prepare ourselves to secure PPP funding if and when more money is made available. Even worse, we can be frustrated that only larger charities or small businesses with up to 500 employees will have the resources, connections or staff needed to be first in line to get this money. After all, this is exactly what has happened, isn't it?

I know what it's like. I had a tough time applying for a PPP forgivable loan myself to protect Drew & Associates and our staff. My lender, Wells Fargo, let me down. I ended up applying through another institution. I don't want anyone else to jump through the hoops I've had to scale. 

We are now working with a number of our non-profit clients to get them ready to apply right now. As one of them reminded me it easy to put this off because you're afraid it is too much work, that it is a waste of time, or that it only goes to more established charities. I get it.

Frankly, it seems silly for me and my staff to work hard to win you grants when the SBA Paycheck Protection Program is potentially available. I can't think of anything more important right now that to help you participate in this program. The amounts and benefits will be amazing.

According to the SBA, your total loan amount will be equal to your annual expenses for labor - wages, salaries, benefits, and 1099s - divided by 12 and then multiplied by 2.5. We have a spreadsheet calculator that will help you figure out the exact amount you can request. It is important to remember that if there person receiving the 1099 is classified as an independent contractor - someone who provides you with services and not just labor - then those payments need to be dropped from the mix. 

As long as you maintain at least 90% of your current staffing, you can spend this money anyway you want as long as you focus on payroll, utilities, rent and interest expenses. If you do that, your loan will be completely forgiven.

I have put together a new service to help you quickly, easily and reliably access these funds with the assistance of our conscientious team. 

Personally, I've got 25 years of experience in dealing with federal loan programs as a loan officer, a client of the SBA, and as a grant writing consultant. My skills will help you to get started and to secure this money. We will:

• Save you time by screening your charity for eligibility;
• Fill out the appropriate PPP paperwork for you;
• Help you gather the necessary documentation;
• If you do not have it, we will help you find it or create it for you;
• Work with your banker or help you find a banker that does SBA loans;
• Submit your application on time;
• Answer any inquiries or requests for additional information, and
• Make sure you get paid quickly.

As far as we know, you should be getting your funding within 30 days of receiving your application approval from the bank or lender. Later, we will work with you to make sure you collect the exact receipts, records, and financial reports you need to qualify for 100% forgiveness of your loan.

One of the cool things about this process is that we will help you become one of the first community leaders to protect their employees and their non-profit by accessing PPP funding. You will be a hero.

On the other hand, I have to be real with you. If you do not apply for this funding it may be catastrophic for your charity.

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We have no way of knowing exactly how long this crisis will last or how much more PPP funding will be available. Since this money is given on a first come, first served basis, it will eventually run out and some people will not be able to get it. Even if you manage to survive without the income needed to cover your payroll, utilities and rent, your charity will be threatened because it will emerge from this crisis damaged, living on a tighter margin and potentially even more vulnerable to continuing financial and pandemic shocks.

All it takes to get started is to pay a small deposit of $250.00 and set-up an intake phone call with me at 949-338-5921.

In that phone call, I ask you some questions about your charity, screen you for eligibility, and then make a recommendation on whether or not it makes sense to bring you on as a client for this PPP opportunity. If it is not a fit, then I will refund your money. If it looks like you are a good prospect, then we will move forward with the paperwork. I'll provide you with a list of needed documents, a loan amount calculator, urgent program updates, official SBA application w/ instructions, unlimited email and phone support.

Once we are ready to go we will charge you an additional $250.00 The total fee for our service will be a flat rate of $500.00

The final result will be astounding for you and your charity. Your employees will enjoy the peace of mind and security that you have wisely provided for them. You will be able to keep up your rent and utility payments. You will be able to put your people to work again doing useful things even if they are no longer meeting with your clients face-to-face.

You will also be prepared to go after a second round of funding too. This will most likely happen if stay-at-home orders, quarantines or marshal law are declared in your area. All in all, you will be appreciated for leading your charity in a crisis and protecting its capacity to complete its mission now and in the years to come. I'm excited to work with you to make this happen. To get started, use the Buy Now button below.

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Yes. There are Grants for Small Businesses

Red Onions with a Copper Pitcher by John C. Drew, 

October 2014.

Normally, I cannot provide much hope for small business owners seeking funding from the federal government. The idea that the federal government wants to help you start a small business is, for the most part, a complete myth. As the Small Business Administration notes on its own website, "SBA does not provide grants for starting and expanding a business."

Most of those who get support from the federal government do so by receiving loans given by private lenders that are guaranteed by the Small Business Administration. This guarantee lowers your interest rate, but it is not free money. 

Money for Scientific Research 

Nevertheless, if your small business is engaged in scientific research and development, then the federal government is interested in hearing from you. They have opened their doors wide to receive proposals in this area and they are more than willing to fund them if you are doing research which matches their own pre-selected research interests. 

The two most important programs you need to know about are the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (SBTT) programs. If you work on a SBTT grant application, then you will need to find a research institution like a major research university to collaborate with you on your research project. You will also need to share a least 30% of the research expenses with a collaborating research institution. Some of the best funders for business owners in the lucrative medical equipment field are the National Institutes for Health (NIH) and the National Science Foundation (NSF).

Regarding the NIH and NSF

I was amazed to learn that you can send unsolicited applications to the NIH without worrying about their current research interests. The next deadline for such an application would be January 5, 2016. The initial Phase I grant would be for $150,000 and any subsequent Phase II grant would be significantly higher, up to $1 million. They make it easy to give them a phone call and check whether or not there is a match. One great thing I noticed about NIH is that there is a conference in Seattle between October 27-29, 2015 where you can learn about how to apply for the NIH’s SBIR funding.

Medical equipment inventors would also be eligible to apply for NSF funding under their various medical categories. 

Tips for Winning

In general, the NIH and NSF are looking for projects which are very near to the marketplace, but still need to be tested on human subjects. From what I understand, if you do a high quality application in an appropriate funding category you have a 50% chance of winning funding. It is best to plan your Phase 1 and Phase 2 research project as one entire research operation. It seems like you are virtually guaranteed to win the much larger Phase 2 funding as long as you can prove your mettle during the Phase 1 funding research.