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Coronavirus/COVID-19

UPDATED - SBA Expands Loan Calculation Options and Eligibility

On March 3, 2021, the Small Business Administration (SBA) issued an interim final rule titled, “Business Loan Program Temporary Changes; Paycheck Protection Program-Revisions to Loan Amount Calculation and Eligibility” (IFR)1  and updated application forms related to the Paycheck Protection Program (PPP). The new rule will allow individuals who file an IRS Form 1040, Schedule C to calculate their…

White House proposes significant PPP changes midstream that will expand eligibility but temporarily limit access

Today the White House announced substantial proposed changes to the Paycheck Protection Program (PPP) some of which will take effect on February 24, 2021. On February 22, 2021, The White House Posted, “FACT SHEET: Biden-Harris Administration Increases Lending to Small Businesses in Need, Announces Changes to PPP to Further Promote Equitable Access to Relief” (Fact Sheet).1 The proposal includes a…

PPP Restart: What Applies When?

On December 27, 2020, the Consolidated Appropriations Act, 2021 (CAA)1 became law. The CAA contains the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Economic Aid Act). The Economic Aid Act contains numerous provisions amending the Paycheck Protection Program (PPP). The effective dates of the amendments vary. If not otherwise provided, the provisions of the Economic Aid…

PPP Restart: Changes for Banks

The Paycheck Protection Program (PPP) is back for a limited time. There is also a new program: Paycheck Protection Program Second Draw Loans (PPP Second Draw). 

On December 27, 2020, the President signed HR 133 Consolidated Appropriations Act, 2021 into law. HR 133 includes the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Act). The Act reauthorizes the PPP that lapsed on…

SBA begins to articulate the PPP loan necessity review process

On December 9, 2020, the Small Business Administration (SBA) issued an update to its Paycheck Protection Program Frequently Asked Questions (FAQs)1 to address why some Paycheck Protection Program (PPP) borrowers are receiving a Loan Necessity Questionnaire(Questionnaire). For over a month, draft questionnaires have been circulating and used by the SBA without official publication or…

Nontransparent PPP Loan Necessity Process Presents Substantial Risks for Borrowers and Lenders

All borrowers under the Paycheck Protection Program (PPP) certified that “current economic uncertainty makes this loan request necessary to support the ongoing operation of the Applicant.”1  The Small Business Administration (SBA) has long planned to review borrower eligibility for all loans in excess of $2 million, in addition to other loans as appropriate, following a lender’s submission of the…

SBA Simplifies Forgiveness for PPP loans of $50,000 or less

On October 8, 2020, the Small Business Administration (SBA) moved to simplify the forgiveness process for Paycheck Protection Program (PPP) loans of $50,000 or less. The SBA issued an interim final rule (ITF)1 and a new application, Form 3508S,2 and instructions.3  The relief does not constitute automatic forgiveness of a PPP loan.

The ITF forgiveness relief applies to borrowers with PPP loans of…

PPP Loans and Change of Ownership

Transactions involving changing the ownership of borrowers with outstanding Paycheck Protection Program (PPP) loans will be subject to new requirements under a procedural notice (Notice) issued by the Small Business Administration (SBA) on October 2, 2020.1  The Notice addresses the circumstances under which lenders may approve a change of ownership, when and how SBA approval must be obtained, and…

CDC COVID-19 Guidance for Banks - Simplifying the Process for Lowering Risk

It has been over four months since the COVID-19 pandemic emergency was declared. During that time, banks have been tasked with crafting solutions to address COVID-19 safety issues while assessing requirements of state executive orders, guidance from the Occupational Safety and Health Administration (OSHA), recommendations from state health agencies, and guidance from the Centers for Disease…

COVID-19: The time to discuss your strategic direction

In times of substantial economic disruption, the natural tendency is to address short-term concerns and put off consideration of longer term strategy until the disruption passes and the picture becomes clearer. Delaying consideration of strategic direction in this fashion forgoes timely consideration of strategic opportunities and evaluation of risks presented by the disruption. Examining your…

Bankers Between a Rock and a Hard Place: PPP Forgiveness Advice to Customers

Many banks have participated in providing loans under the Paycheck Protection Program (PPP). A key feature of PPP loans for most borrowers is the prospect of having the debt forgiven. Bankers are currently in a difficult position in responding to customer requests for guidance on forgiveness.  

Understandably, PPP borrowers wish to clearly understand the conditions that must be met to receive loan…

The US Chamber of Commerce Foundation “Save Small Business” Grant Program

The Save Small Business Fund is a grant initiative administered by the U.S. Chamber of Commerce Foundation offering short-term relief for eligible small employers in the US and its territories. Eligible small business can apply to receive a $5,000 grant to be applied to business expenses.

TO QUALIFY YOU MUST

  • Employ between 3 and 20 people
  • Be located in an economically vulnerable community
  • Have been…

 

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