The OBA just got off the phone with Treasury Secretary Steve Mnuchin. He said directly:
1. Setting up this program has taken a monumental effort on the part of Treasury and the SBA.
2. More than 1,200 banks are already in the program and making PPP loans now.
3. Bank directors ARE ELIGIBLE to participate in the PPP process! It would be better if these loans were made by another bank, but there is no prohibition or mandate that the bank does so. [Note: the SBA said here are no restrictions that prohibit bank directors from participating – YET.
4. There have been 77,544 loans made through this program as of 8 a.m. today.
5. More than $22 billion has been released into the system since the doors opened on Friday. This amounts to $1 billion per day!
6. If a bank is not an SBA-qualified lender yet, the process of on-boarding that bank ASAP is now in place and should be working (using SBA Form 3506 which you can access by CLICKING HERE)
7. The Secretary also said the Fed is in the process of establishing a “Main Street Lending Program,” but we’re not sure when it will be up and running, what it will look like or how it’s to be funded.
8. Secretary Mnuchin also reported community banks are leading the way in the collective effort to put people back to work and get this economy going again.
9. President Trump will most likely ask Congress for additional funding for this program. He also said there is an existing process available now that can be used without having to wait until Congress returns on April 20, so it could happen quickly.
10. The ABA is in the process of establishing a dedicated PPP email portal to answer questions and provide guidance to bank customers.
That’s what we know so far.