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FAs’ Roles in Helping Clients Secure PPP Loans

This week, Senate and House of Representatives separately approved a new $484 billion aid package for coronavirus pandemic relief, which includes $310 billion for the PPP. The $2 trillion Coronavirus Aid, Relief and Economic Security (Cares) Act, signed into law in late March, provided $349 billion for the PPP, which offers small-business loans forgivable if at least 75% of the amount is used to cover payroll, among other things. More than 1.6 million small businesses received the Small Business Administration-backed forgivable loans during the first two weeks they were available, but the original funding ran out on April 16.

Alex Chastain, a financial planner at Columbia, S.C.-based Abacus Planning Group, which has more than $1 billion in assets under management, sees her role as a curator and interpreter of complex information for her clients.

Most of Chastain’s clients who were eligible for the PPP applied the first time around. It was easier for her clients to get loans from small banks, but many of them didn’t succeed, she said.

Among Chastain’s clients who failed to secure a loan were a salon owner who was rejected from one bank because she had no loan history with it and a building company owner who learned from his bank that he was on page three of the applicants’ queue. Among those who succeeded was a law firm owner who got approval for a $300,000 loan.

Read the full article on financialadvisoriq.com.

FinancialAdvisorIQ.com

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FAs’ Roles in Helping Clients Secure PPP Loans

This week, Senate and House of Representatives separately approved a new $484 billion aid package for coronavirus pandemic relief, which includes $310 billion for the PPP. The $2 trillion Coronavirus Aid, Relief and Economic Security (Cares) Act, signed into law in late March, provided $349 billion for the PPP, which offers small-business loans forgivable if at least 75% of the amount is used to cover payroll, among other things. More than 1.6 million small businesses received the Small Business Administration-backed forgivable loans during the first two weeks they were available, but the original funding ran out on April 16.

Alex Chastain, a financial planner at Columbia, S.C.-based Abacus Planning Group, which has more than $1 billion in assets under management, sees her role as a curator and interpreter of complex information for her clients.

Most of Chastain’s clients who were eligible for the PPP applied the first time around. It was easier for her clients to get loans from small banks, but many of them didn’t succeed, she said.

Among Chastain’s clients who failed to secure a loan were a salon owner who was rejected from one bank because she had no loan history with it and a building company owner who learned from his bank that he was on page three of the applicants’ queue. Among those who succeeded was a law firm owner who got approval for a $300,000 loan.

Read the full article on financialadvisoriq.com.

FinancialAdvisorIQ.com

FacebookTwitterLinkedIn

FAs’ Roles in Helping Clients Secure PPP Loans

This week, Senate and House of Representatives separately approved a new $484 billion aid package for coronavirus pandemic relief, which includes $310 billion for the PPP. The $2 trillion Coronavirus Aid, Relief and Economic Security (Cares) Act, signed into law in late March, provided $349 billion for the PPP, which offers small-business loans forgivable if at least 75% of the amount is used to cover payroll, among other things. More than 1.6 million small businesses received the Small Business Administration-backed forgivable loans during the first two weeks they were available, but the original funding ran out on April 16.

Alex Chastain, a financial planner at Columbia, S.C.-based Abacus Planning Group, which has more than $1 billion in assets under management, sees her role as a curator and interpreter of complex information for her clients.

Most of Chastain’s clients who were eligible for the PPP applied the first time around. It was easier for her clients to get loans from small banks, but many of them didn’t succeed, she said.

Among Chastain’s clients who failed to secure a loan were a salon owner who was rejected from one bank because she had no loan history with it and a building company owner who learned from his bank that he was on page three of the applicants’ queue. Among those who succeeded was a law firm owner who got approval for a $300,000 loan.

Read the full article on financialadvisoriq.com.

FinancialAdvisorIQ.com

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