Wondering why you didn’t get approved for the Paycheck Protection Plan?
You may have been one of the businesses that pounced on the hastily assembled Paycheck Protection Program in hopes of getting a loan. Many businesses succeeded, but some did not, and it’s not always clear why. If you didn’t, Wondering why you didn’t get approved for the paycheck protection plan here are some clues why.
Your first call should be to the lending institution. PPP loans don’t come directly from the Small Business Administration or another government agency, but from banks approved to work with the SBA. There is no universal portal to track your loan or uncover reasons for delays or rejections. Your contact at your bank or your bank’s own loan portal might be able to help you.
Also, here are some other items that might be holding you up, according to SmartAsset, a personal financial technology company.
Failure to document employee costs.
This error is especially common with sole proprietorships. Owners should make sure they are listing actual employees and not contract workers. If you don’t have any actual employees, you may still be OK — PPP loans are available for gig workers, sole proprietors and independent contractors. But you have to have your papers in order.
Franchised businesses are eligible for PPP loans but need to be in the SBA franchise directory. If you’re having trouble, make sure you’re on the list. If not, contact the SBA about how quickly you can get on it.
Failure to meet key qualifications.
SmartAsset notes that if you were not in operation before Feb. 15, 2020, you won’t be considered. Also, businesses with a 20% owner with a prior felony conviction or guilty plea will be rejected.
Certain business classes were initially excluded, such as banks, investment companies, passive real estate investment companies and speculative trading firms, according to the National Law Review. But there is some gray area here: Some registered investment advisors, for example, were initially rejected, but found on reapplication they were accepted, according to Wealthmanagement.com. If you were rejected because your business class is excluded, you may have to have a conversation with the SBA if you believe you are in an acceptable group.
Concerned about your ability to accurately handle payroll in order to better your chance at loan forgiveness? Atlantic Payroll Partners can help, give us a call at 772-466-0440 to take the stress of payroll off your plate.
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At Atlantic Payroll Partners we believe we are the best, local payroll provider to help you grow your business. Even more than that. We’re a Professional Employment Organization that offers an incredible suite of solutions for your business. In addition to offering payroll services we offer, full-service HR, workers’ compensation, accounting, and health care benefits. Our solution suite is back by over 100 years of combined experience in the PEO space.
We’re proud to say that we’ve helped businesses reduce employee turnover, increase revenue, make more money, and lighten their daily load by working with us. Our clients can offer their employees’ health care benefits, and access to the same 401k plans that the Fortune 500 companies use without breaking the bank.
We welcome you to continue exploring our website, to learn more about Atlantic Payroll Partners and how we can help improve your business.
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