Paycheck Protection Program And SBA Loans

Dated: 04/09/2020

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I hope everyone is hanging in there! It is a very stressful time for business owners but relief through the Paycheck Protection Program looks like it will be coming soon. For those that have submitted the pre-application information, your loans are registered with a national SBA preferred lender and in-line for processing once the SBA provides more clarity on guidance and fixes its approval submission portal. Once up and running, the PPP loan should be processed on average 20 to 30 minutes per loan with next day funding if the loan package is complete. Here are the documents that will be needed to process your loan:

  • Completed SBA Paycheck Protection Program Application Form (SBA Form 2483) (Attached)

  • All owners’ Driver’s Licenses (front and back) with at least 20% of ownership

  • IRS Form 940 and 941 (as of 12/31/19 and 3/31/20, respectively)

  • Payroll Report for February 15, 2020 (or closest date).

  • Annual Payroll Report for 2019 (calendar year through December 31, 2019)

  • If an SBA EIDL loan was made between 1/31/2020 and 4/3/2020, a copy of the note

All SBA approved approved lenders are trying to keep up with all news from the Treasury, SBA, participating lenders, and politicians for updates on the PPP process and when we should expect for the PPP to be ramped up with all lenders having clear guidance on how to proceed. There is a lot of misinformation in the news and on social media. Some sources of information have been more transparent than others. The SBA and the head of the SBA have left much to be desired with their social media posts.  Senator Marco Rubio's social media posts provide valuable updates. He is the Chairman of US Senate Committee on Small Business and Entrepreneurship and has provided information on the problems with the PPP, potential solutions that will be provided, and the timing of those solutions.

Here is a summary of what we know are the main issues that still need to be resolved:

- Guidance on the payroll calculations is unclear (Is gross payroll costs used with federal taxes included in the calculations? Are 1099 employees included in the calculations?)

- Guidance on the eligibility of businesses that qualify for the PPP is unclear.

- SBA was working on technical issues, including the crash of the online system CAFS, which is the wider on-line portal that e-trans is a part of.  This system is where every bank and lender participating in the PPP have to submit approved loans. The amount of volume has overwhelmed the system. The CAFS system usually processes approx. 60,000 loans per year, which is a drop in the bucket compared to the volume expected and received based on Friday's activity. 

- Guidance on the 100% SBA guarantee and buyback of the loans originated by banks and lenders is unclear.

Here is where everything stands as of today:

- US Treasury is working on a FAQ for both borrowers and Lenders to provide clarity on these issues.

- Amazon is working with the SBA to fix the CAFS system and be able to handle the large volume of loan approvals.

- The federal reserve stated it will be creating a facility to buy back loans from banks and lenders.

These changes will take a couple of days to implement. There should be progress every day. 

See below a statement one of the SBA preferred lenders released last night.

As many of you know from following the national news, the rollout of the Paycheck Protection Program (PPP) has been marred with many issues. Most national lenders have yet to process any loan applications with the U.S. Small Business Administration (SBA), and the few financial institutions that have submitted to SBA have done so without critical guidance as to what is needed to close/fund the loans, secure the note on behalf of the borrower, or authorize the guarantee. News reports of “funded” loans may be instances in which lenders have taken on possibly reckless risk on behalf of their borrowers. While admirable, this is dangerous for the lending community and possibly even to those borrowers as well.

We have been working with SBA, Treasury, the National Economic Council (NEC) in the White House, elected officials, and many others to help finalize the guidance so that we can begin processing loans and putting money into the hands of our borrowers.

We remain committed to the loan program and to helping our borrowers save jobs and stabilize the US economy. We ask for your continued patience as we work through the challenges and await the final guidance from SBA.


I hope this email provided a useful update on the status of the Paycheck Protection Program. Many of you are understandably anxious. Muth Capital is here to be a resource for you to get accurate information on the process, apply for the program, and give guidance as information is released.


For those we have registered already, stay strong, help is on the way! For those that have not applied or business owners in your network that may want guidance as they navigate the Paycheck Protection Program, please contact Kyle Muth, CFA of Muth Capital or your preferred trusted lender for advice and clarifications. To Schedule a Call: https://calendly.com/muthcap

This blog does not constitute legal or financial advice and is provided as a general information only. 


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Julia Kushnir

I am a proud Nyack resident with over 10 years of experience in real estate. I developed a real passion for this industry when I got my first apartment at age 24, and since then have became the owner/....

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