SBA Funding Update 4/27
SBA Funding Update 4/27
April 27, 2020As you all know by now, the Coronavirus relief expansion bill passed last week. As of 7:30 a.m. Pacific Time today, banks resume PPP application processing. For those of you still working to help small businesses connect with a PPP lender, here is a complete list by state of PPP lenders from the last round of funding.
Due to the unprecedented demand for Paycheck Protection Program loans by the nation’s small businesses and to ensure equitable access and system integrity, SBA and Treasury are taking prudent and reasonable steps to protect SBA’s loan systems for the next phase of PPP loan processing.
SBA and Treasury are implementing the following measures:
- Pacing the number of loans processed in the E-Tran system for participating lenders when processing resumes on Monday, April 27, 2020 at 10:30 am EDT;
- Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap);
- Implementing operational standards to ensure that lenders access PPP funds based on their asset size;
- Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees; and
- Issuing the following guidance (https://content.sba.gov/document%E2%80%8C/policy-guidance%E2%80%8C-%E2%80%8C-guidance-memo-xml-file-submission-process-paycheck-protection-program-ppp) for lenders who have received a significant amount of loan applications.
- SBA and Treasury value all lenders and their small business customers and will continue to provide updates to the PPP lending community as loan processing resumes this week.
There is a tool posted on Treasury website that shows borrowers how to calculate payroll by industry with detailed step by step guidance. The PDF here.
Economic Injury Disaster Loan (EIDL) Update
With the announcement that PPP opens at 10:30 AM on Monday, many have asked when EIDL portal opens. As of today it is TBD when the EIDL portal reopens. It appears the strategy is to process and fund what they currently have.
EIDL funds may already be spoken for from the last application round, the SBA Office of Disaster Assistance is working to calculate that this week.
Updates are being made regularly on the SBA and Treasury websites. We recommend checking in a couple times a day (and refreshing your page if it’s been open a while) to make sure you’re reading the latest info and documents.
As more and more changes happen (by the hour, it seems), it’s best to refer people to www.sba.gov/coronavirus andwww.sba.gov/updates. This is where the most up-to-date info will be posted and how they can subscribe for news and alerts.
As more inquiries about potential frauds or scams come in, feel free to direct people to the Office of Inspector General website: www.sba.gov/oig. The site contains an online form to submit a complaint along with scam and fraud alerts related to COVID-19.
Thank you for all you continue to do to support small business.