The latest round of the Paycheck Protection Program (PPP) is bringing more than just much-needed funds to small businesses. It’s attracting third-party vendors that want to be your lender. Compared to Wisconsin banks, these vendors are not as heavily regulated nor are they examined as closely by regulators to be sure every step was taken correctly and securely.
That’s why it’s important for a business to know who they are using for the entire PPP process. Many non-banks participating in PPP will have different entities work on different steps of the process. From the initial application to the forgiveness phase, it’s critical to know which business is handling which step. Consulting your bank will give you a necessary understanding of how the process works.
Wisconsin banks have been through two rounds of PPP already and have the knowledge and experience that most are lacking with this powerful program.
Business owners should consult their bank as to whether a PPP loan is the right choice or if there are other options to be considered. The bank will also guide them on how to gather the right paperwork including payroll information and financial reports.
By, Eric Skrum