Recent highlights on four critical issues, courtesy of ABA President and CEO Rob Nichols.
• A liquidity facility to absorb PPP loans. On Monday, the Fed announced it is building a liquidity facility to absorb the PPP loans banks are making. ABA and the state associations strongly advocated for such a facility, and we are now urging policymakers to convey the contours of this new facility with haste. We hope to hear more within the next 48 hours and will get you details as soon as we do.
• Additional funding. In response to concerns PPP funds would be quickly exhausted, President Trump announced he would ask Congress to approve another $250 billion in additional funds for the program.
• Earlier today, Senate Majority Leader Mitch McConnell indicated he would schedule a vote for as early as Thursday on a measure to provide an additional $200 billion for the PPP.
• Democrats in Congress appear open to additional funding as well, perhaps with conditions. Senate Small Business Committee Chairman Marco Rubio, who drafted the PPP program, is also calling for additional funds.
• More guidance. We are gradually getting the guidance and forms lenders need. Last night, Treasury posted a Promissory Note that lenders should use. Last night, it also updated its Treasury FAQ on the PPP to cover, among other things, more information on payroll cost calculations and affiliation rules.
• There’s more to come, such as where to send closing documents and how quickly to disburse funds.
• Bookmark this link – https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses – as it will be the primary vehicle for SBA and Treasury to provide additional guidance as the program moves forward.
• Improved and more reliable access to E-Tran. This issue has been the biggest headache for our member banks, but we’re seeing some progress. SBA has set up a new gateway for lenders to use to submit loan authorization requests, which should help with access issues. (Click here to start. You’ll need to create an account on SBA Connect and then follow instructions.) We continue to encourage improvements. While there are 3,300-plus lenders now online, there are still several thousand to onboard.