After bipartisan negotiations, the Senate this afternoon unanimously passed legislation to provide more than $320 billion in new funding for the Small Business Administration’s Paycheck Protection Program. The House must now approve the bill, which it is expected to do in a floor vote later this week.
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.
American Bankers Association President and CEO Rob Nichols welcomed the news. “Thanks to the tireless efforts of America’s banks, nearly 1.7 million small businesses have already received an average PPP loan of $206,000, according to the Treasury Department,” he said. “Unfortunately, millions of other small businesses desperate for assistance were still waiting for help when the SBA funds ran dry, which is why this legislation is so critical.”
“America’s banks will continue to stand by their small business customers and do everything they can to deliver this relief quickly and efficiently, saving jobs and limiting the economic damage from this pandemic,” Nichols added. ABA will keep members notified about the availability of SBA systems for entering and processing loan applications once they are re-opened following passage in the House.
Read all ABA Banking Journal coverage on the SBA Paycheck Protection Program.