House Approves Additional PPP Funds, President to Sign Imminently
April 24, 2020
By a strong bipartisan vote last night, the House cleared legislation providing more than $320 billion in new funding for the Small Business Administration’s Paycheck Protection Program. The Senate passed the bill earlier this week, and President Trump is expected to sign it today.
Of the more than $320 billion appropriated for PPP loans, a minimum of $30 billion will be set aside for community development financial institutions, banks and credit unions with less than $10 billion in assets. Another $30 billion at least will go to banks and credit unions with assets between $10 billion and $50 billion. (Institutions in these categories may originate PPP loans above these levels.) The bill also includes an additional $60 billion in funding for the SBA’s Economic Injury Disaster Loan program and provides long-sought clarity that agricultural businesses may apply for EIDL funds.
ABA has been urging lawmakers to approve additional funding for the PPP since the program first ran out of funding on April 16, and President and CEO Rob Nichols welcomed this much-needed action by the House. In an update to bank CEOs earlier today, Nichols said he has asked Treasury officials to give lenders advance notice of when SBA’s E-Tran system might be reopened so that they can be ready to enter applications.
American Bankers Association 4.24.20
PPP Funds Exhausted; SBA No Longer Accepting Loan Applications
April 17, 2020
The $349 billion authorized for Paycheck Protection Program loans has been exhausted, the Small Business Administration said yesterday morning, and the SBA is no longer accepting applications for PPP loans. Loan applications received by banks but not yet submitted to SBA will not be able to be completed, and the agency will not maintain a queue for PPP applications once additional funds are authorized. Any loan applications that have received an SBA authorization number will receive an SBA guaranty.
ABA is strongly advocating for Congress immediately to authorize new PPP funding to meet the payroll needs of small businesses struggling during the coronavirus pandemic. ABA is also encouraging bankers and their small business customers to contact the office of congressional leadership- House Speaker Nancy Pelosi, House Minority Leader Kevin McCarthy, Senate Majority Leader Mitch McConnell and Senate Minority Leader Chuck Schumer at (202) 224-3121 and ask them to approve more PPP funding expeditiously.
American Bankers Association 4.17.2020