With many banks continuing to receive hold codes and compliance check error messages when submitting first- and second-draw Paycheck Protection Program loan applications, the Small Business Administration today issued a second procedural notice with new instructions for lenders to clear these codes and move applications forward.
Testifying before the Senate Banking Committee today Treasury Secretary Janet Yellen told the committee that she supports an extension of the Small Business Administration’s Paycheck Protection Program, saying that “the economy is not in a place where small businesses that have been affected are able to thrive.”
Testifying before the House Financial Services Committee today, Treasury Secretary Janet Yellen highlighted recent changes to the Small Business Administration’s Paycheck Protection Program that will allow more small businesses, especially in rural and low income areas, access to the funds.
The Small Business Administration has issued several updated forms for Paycheck Protection Program borrowers and lenders, reflecting changes announced in an interim final rule earlier this week.
The Small Business Administration yesterday issued an interim final rule implementing changes to the Paycheck Protection Program that were included in the most recent COVID-19 relief bill, which took effect earlier this month. The IFR will take effect upon publication in the Federal Register.
By a vote of 415 to 13 last night, the House passed an American Bankers Association-supported bill that would extend the Small Business Administration’s Paycheck Protection Program application deadline from March 31 to May 31.
During the American Bankers Association’s virtual Washington Summit today, Sen. Joe Manchin (D-W.Va.) praised bankers and their work on the Small Business Administration’s Paycheck Protection Program, calling them a lifeline that “kept businesses alive.” Manchin also urged bipartisan cooperation, especially with regard to the pandemic recovery, emphasizing that “we have to work together, we have to find a pathway forward—we’re all Americans, we’re all in this together.”
The Small Business Administration is now accepting second-draw PPP loan applications from borrowers who previously submitted first-draw loan applications in calendar year 2021.
As the Small Business Administration prepares to wind down the Paycheck Protection Program, the American Bankers Association and a coalition of other trade groups called on Congress today to extend the application period for the program because of continued SBA processing issues.
The Small Business Administration over the weekend updated its Paycheck Protection Program FAQs and calculation guidance documents to reflect new options available to Schedule C-filing PPP applicants, including self-employed individuals, sole proprietors and independent contractors, to use gross income to calculate their loan amount.