The Small Business Administration announced today that the Paycheck Protection Program will officially reopen on Monday, Jan. 11, only to community development financial institutions, minority-depository institutions, certified development corporations and microloan intermediaries making first-draw PPP loans.
The Internal Revenue Service has issued guidance implementing changes included in the latest COVID-19 relief package—which was signed into law last month—related to the deductibility of business expenses paid for with Paycheck Protection Program loan proceeds.
With Congress poised to cast final votes on a $900 billion bipartisan coronavirus relief package later this evening, ABA staff are currently reviewing the 5,500 page legislative text.
In a Wall Street Journal op-ed this week, two Treasury Department officials made the case for an additional round of Paycheck Protection Program funding, noting that “its success has been pivotal in supporting the recovery.”
In a comment letter to the Consumer Financial Protection Bureau today, the American Bankers Association offered feedback on a recent outline of the proposals the bureau is considering to implement Section 1071 of the Dodd-Frank Act, which concerns the collection of credit application data for women-owned, minority and small businesses.
The federal banking agencies today released 2019 Community Reinvestment Act data on small business, small farm and community development lending.
Community banks took on an outsized share of Paycheck Protection Program lending, according to a blog post today by the Conference of State Bank Supervisors. Nationwide, community banks’ outstanding balance of PPP loans to total assets was 6.04%, compared to 1.81% for non-community banks.
The Small Business Administration this week released a Q&A document addressing certain tax issues related to payments made on behalf of borrowers to lenders for existing SBA 7(a), 504 and microloans.
In an interview with NPR Marketplace’s Kai Ryssdal Friday, former ABA Chair Laurie Stewart said that additional funding for the Small Business Administration’s Paycheck Protection Program would be appropriate as many small businesses continue to struggle due to the coronavirus and will likely face a very challenging winter.
There has been considerable analysis and discussion regarding the accounting and tax treatment of PPP fees that are payable to banks.