Month: May 2020 Page 1 of 3

Main Street Lending Program Information Released

The Federal Reserve Bank of Boston today released several borrower and lender documents and a revised FAQ for the Federal Reserve’s Main Street Lending Program.  The documents were released on the Federal Reserve of Bank of Boston website.  The lending program was established with the passing of the CARES Act and is expected to be operational by early June. 

The Program is meant to support small and medium-sized businesses that were in sound financial condition before the COVID19 pandemic.

Our team is working through all of the information and will include an overview during Monday’s webinar.

The revised FAQ document is 56 pages long and the list of documents released late last night are below:

Please reach out to cares@brinkersimpson.comRead More

PPP Flexibility Act of 2020 & Invitation to kick off June 2020 with us at our upcoming PPP Party (social distancing brought to you by Zoom)

Congress is expected to pass the Paycheck Protection Program Flexibility Act of 2020 (H. R. 7010) to provide relief to borrowers participating in the Paycheck Protection Program (PPP).  There is bipartisan support in the House and Senate to address the most significant areas of concern raised by business owners/borrowers, CPAs, and industry groups. The House is expected to vote tomorrow, May 28,2020 (almost 2 months to the day from the passing of the CARES Act, feels much longer).  Our earlier post provided details about the House version of the bill and potential negotiations being considered to reconcile to the Senate version. Read More

Bipartisan House Bill introduced to Remedy Major PPP Issues; Legislative Relief May Pass as Early as This Week

On May 26, 2020, the bipartisan Paycheck Protection Program Flexibility Act of 2020 (H. R. 7010) was introduced in the House of Representatives to address some of the major concerns voiced by Paycheck Protection Program (PPP) borrower with regard to forgiveness and to modify other provisions of the Program.  

PPP borrowers across the county have expressed major concern with the loan requiring funds be spent over the 8 week covered period following receipt of the loan proceeds.  Many businesses, the most severely impacted, are only now beginning to see relaxed rules or information about reopening plans from their states.  The PPP required borrowers to restore both their headcount and salary levels to pre pandemic levels by the end of the covered period or June 30th. Read More

Main Street Lending Update (barely) and More from the Senate Banking Committee Hearing Last Week

On May 19th, the U.S Senate Banking Committee held a virtual hearing.  The Committee questioned Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell about how they are using the $2 trillion CARES Act stimulus funds.

CARES Act Programs were discussed.  Updates are below.

Chairman Powell for updates from the Federal Reserve:

  • Main Street Lending Program – “preparing to launch” per Chairman Powell
    • When pressed by Senator Pat Toomey (R) on a more definitive launch date, Powell said he expects the program to be operationa by the end of May or first few days of June
  • Municipal Liquidity Facility established under section 13(3) authority to purchase short-term debt directly from U.S.
Read More

Municipal Funding Facility – Overview and Notice of Interest Form Release

The Board of Governors of the Federal Reserve System (the “Federal Reserve”), through the Federal Reserve Bank of New York (the “Reserve Bank”), is in the process of launching a new CARES Act lending program, known as the Municipal Liquidity Facility (the “MLF”), for state and local governments affected by COVID-19 pandemic.

The Municipal Liquidity Facility is designed to help state and local governments improve cash management challenges resulting from the COVID19 mitigation measures, including significantly reduced tax collection revenue.  The facility will purchase up to $500 billion of short term notes from eligible issuers.

Originally, eligible issuers included U.S. states (including the District of Columbia), U.S.… Read More

Millions of people will get their Economic Impact Payment by prepaid debit card

Nearly four million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check, the Internal Revenue Service announced last week. 

The announcement comes as a result of an interpretive rule issuance from the Consumer Financial Protection Bureau (CFPB) clarifying that coronavirus relief payments will not be considered “government benefits” and can be issued as prepaid cards, as a result.  The CFPB has issued a FAQ page with more information.

The determination of which taxpayers receive a debit card was made by the Bureau of the Fiscal Service, another part of the Treasury Department that works with the IRS to handle distribution of the payments. Read More

PPP – Borrower & Lender Responsibilities – Interim Final Rule

The CARES Act was enacted on March 27th, 2020 to provide immediate assistance to individuals, families, and organizations affected by the COVID-19 emergency.

Among the provisions contained in the CARES Act are provisions authorizing SBA to temporarily guarantee loans under the Paycheck Protection Program (PPP).  The intent was to quickly provide funding to struggling business owners impacted by the government mandated public health measures designed to mitigate the spread of the virus.  In service of that goal, the structure of the program relies on borrower documentation and certifications to apply for loans and forgiveness.

The central purpose of the program, per the CARES Act, is keeping workers paid and employed. … Read More

As My Thoughts Seem to Scatter, Let’s Get to The Heart of the PPP Matter. Forgiveness, I Think It’s About Forgiveness.

The Small Business Administration released the Paycheck Protection Program (PPP)  Forgiveness Application last week on May 15th (a Friday after the close of business).  We provided a summary of the application HERE and hosted a webinar last week to answer your questions about the application.  You can download and view the Webinar HERE.

Last night the SBA released two new Interim Final Rules related to the PPP.  The first is related to the Forgiveness Application and answers some, but not all, questions we had related to the application.  The second is related to Lender and Borrower Responsibilities, you can find more details on that release HERERead More

Gov. Wolf Adds Eight Counties to Yellow and 17 to Green on May 29, Remainder to Yellow on June 5

Governor Wolf posted a press release today indicating all counties will move to the “yellow” phase June 5th (one day after the current stay-at-home orders expire).

See the information below and HERE for more details.

Furthering his plan for reopening Pennsylvania, Governor Tom Wolf today announced eight additional counties will move to yellow and 17 to green, effective at 12:01 a.m., May 29. All remaining counties in red are expected to move to yellow by June 5 at 12:01 a.m.

The counties moving to yellow on May 29 include Dauphin, Franklin, Huntingdon, Lebanon, Luzerne, Monroe, Pike, and Schuylkill.

The 17 counties moving to green, also on May 29, include Bradford, Cameron, Clarion, Clearfield, Crawford, Elk, Forest, Jefferson, Lawrence, McKean, Montour, Potter, Snyder, Sullivan, Tioga, Venango and Warren.… Read More

Gov. Wolf Signs Cocktails-to-Go Bill

As everyone kicks off the the 2020 Memorial Day Weekend under various levels of stay at home orders, Governor Tom Wolf signed House Bill 327, now Act 21 of 2020, allowing the temporary sale of cocktails-to-go from bars, restaurants or hotels with a liquor license.The bill was signed May 21, 2020 and became effective upon signing.

“This new temporary rule creates more business for bars and restaurants when they need it, helps to meet customer demand and supports social distancing,” said Governor Wolf. “As we approach the holiday weekend, I encourage all Pennsylvanians to remember to drink responsibly.”

Who is Eligible?Read More

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