Category: Uncategorized

Paycheck Protection Small Business Forgiveness Act – introduced in the Senate

The Paycheck Protection Small Business Forgiveness Act (PPSBFA, S.411), a bipartisan bill, was introduced to the Senate on June 30, 2020.  The PPSBFA would provide automatic loan forgiveness to all PPP loans under $150,000.

Since the establishment of the program through July 14, 2020, 4.9 million loans and $517 billions have been provided to business owners.  The SBA’s most recently issued demographic details reflect that 86.6% of PPP loans and 27.6% of PPP funds would qualify for automatic forgiveness should the PPSBFA become law.

The Paycheck Protection Program (PPP), a provision in the CARES Act signed into law by President Trump on March 27, 2020, provides forgivable loans for businesses impacted by the devastating financial impact of the epidemic.  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.
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SBA issues major forgiveness related answer on FAQs.

Most visitors to our site are familiar with the Paycheck Protection Program (PPP).  It has attracted massive interest from business owners and non-profits across the country.  The loan program was established with the passing of the CARES Act on March 27, 2020.  The Program went live April 3rd with a directive to qualified lenders to deliver funding as quickly as possible.  The PPP’s hallmark feature is the eligibility to have the entire loan amount forgiven for meeting certain criteria including restoration of headcount/ salary levels and mandating that for full forgiveness, 75% of proceeds be used for eligible payroll costs, as defined by the Act.… Read More

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