It’s a marathon, not a sprint–David Solomon
It’s been three weeks since the U.S. Presidential elections. Since then, there has been elevated chatter about what a transition in administration will mean for the thirty million members of the small business community come January, 2021. Small business owners voted their interests but remain anxious about what is to come, particularly as it relates to PPP loan forgiveness.
Here’s what we know about PPP loan forgiveness, now and heading into the new year:
First, it’s important to continue to exercise patience. What does this mean? In a recent November panel with alumni from the Goldman Sachs 10K Small Business community, President and Co-Chief Operating Officer David Solomon shared his mantra about navigating current economic factors. Solomon reminds his own people every day that “it’s a marathon, not a sprint.” He went on to apply this message to all small business owners both wrestling with the financial and physical distresses of the pandemic; and the timing challenges resulting from an outgoing Trump administration. As business owners await congressional approval on future iterations of PPP loan forgiveness and stimulus negotiations in general, patience is paramount.
Many potential loan forgiveness applicants have chosen the ‘wait and see’ approach before submitting their claims should Congress amend its current rules when they return in January. In the meantime lenders continue to advocate for simplified forgiveness terms, especially for borrowers at the $150,000 threshold. As it stands now, the de minimus threshold is $50,000, though lenders are collectively lobbying to increase that number. The concern about fraud is also being discussed, which is why banks and lending institutions are advocating that the new administration would turn some qualifying loans into grants.
While patience could yield significant returns, exercising said persistence doesn’t mean business owners should not stronghold their business plans and potential earnings now. Raj Tulshan, Founding Partner of Loan Mantra, reminds borrowers how. “This time of waiting can still be one of significant productivity. It’s an ideal time to secure your financials and prepare your paperwork for future funding.” Loan Mantra, powered by Blue, allows borrowers optimal to optimally and securely prepare for potential new loan forgiveness terms and future SBA products as they arrive. A borrower need only to upload their information on Loan Mantra’s portal to proactively prepare for activity in the new year.
Finally, the Biden-Harris Presidency has repeatedly committed to offering educational services and resources to aid small businesses, especially women and minority-owned businesses. This focus is important because it underscores much of the advisory work Loan Mantra and its employees are doing already.
Do you have a question about your business? Get in touch! It’s never too early to patiently prepare for your future and the new year ahead.