As the Paycheck Protection Program entered its second full week, there were a multitude of complaints regarding banks having problems establishing application processes and dealing with increased demand. Businesses were confused if they qualified for the program. Chad Kime, managing director and Ali Baydoun, principal (UHY Great Lakes region) shared their experiences with Crain’s Detroit Business. For those who have a Crain’s subscription, you can view the article here.
Below are their excerpts. "I think the banks are in very similar positions as we were as professionals. You're taking imperfect information and you're trying to work with it and set up something as best as you can," said Ali Baydoun, a principal in the Farmington Hills office of CPA firm UHY LLP. "To me, the disappointment doesn't come from the bank perspective, it really comes from the fact that guidance was very, very slow to be issued."
Regarding SBA “affiliation rules”: The issue, said Chad Kime, a partner at the UHY accounting firm, is the lack of a hard-and-fast rule. "A lot of those affiliation rules are determined on a case-by-case basis. You have to look at it where there's no bright-line test, so that's the difficulty," said Kime. "We have found that several of our private equity groups we work with just don't qualify because of that affiliation rule."