The Small Business Administration’s Paycheck Protection Program, authorized by the CARES Act, became available on April 3 for small businesses and sole proprietorships and on April 10 for independent contractors and self-employed individuals. Lenders participating in the PPP have been overwhelmed by the number of applicants and are working diligently to process the loans expeditiously. One concern for lenders is providing a quick turnaround while still complying with the Bank Secrecy Act requirements. The SBA […]
Category: Coronavirus
FEDERAL RESERVE BOARD’S PANDEMIC RELIEF EFFORTS
On April 9, 2020 Treasury Secretary Mnuchin approved the establishment of a Main Street Business Lending Program and a Municipal Liquidity Facility to support the flow of credit to American workers, businesses, States, counties, and cities impacted by the Coronavirus pandemic. Main Street Business Lending Program Small and medium-sized businesses, through no fault of their own, have faced severe financial strain from widespread closures and liquidity pressures in the financial system. Using funds appropriated under […]
UPDATE ON SBA PAYCHECK PROTECTION PROGRAM
Details related to the Paycheck Protection Program (PPP) continue to evolve. First it appears that Congress is poised to provide additional funding for the program. Also, the Small Business Administration continues to relax the rules to make it easier for financial institutions to participate. The new $349 billion program was part of the CARES Act. All insured financial institutions can offer the PPP immediately, even if the institution is not a SBA certified lender. Additional […]
SBA PAYCHECK PROTECTION PROGRAM
The Paycheck Protection Program (PPP) is the hottest commercial loan product in the financial institution industry right now. The new $349 billion program was part of the CARES Act. Applications could be accepted starting last Friday. Here is the big deal – all insured financial institutions can offer the PPP immediately, even if not a SBA certified lender. The PPP provides much-needed relief to millions of small businesses so they can sustain their businesses and […]
PANDEMIC RELIEF EFFORTS
On March 11, the World Health Organization declared COVID-19 a Pandemic. In a mere 21 days the world has changed for everyone, for some more than others. In some states the Pandemic is in the surge stage and is reaching the apex of the curve. Hopefully, the curve will soon begin to decline. In other states the acceleration phase is just getting started. Right now your primary concern is just getting through the crisis. After […]