Breaking news from the ABA:
Newly added FAQs from the Small Business Administration and the Treasury Department today address two challenges with the Paycheck Protection Program that ABA and the state bankers associations have been urgently raising with officials: the promissory note to use with PPP loans and the expectation for a five-day period between loan approval and funding.
Regarding the promissory note, SBA clarified that lenders may use their own note or an SBA form. The agency released its own form last night, but it may be revised following ABA and industry feedback to meet lenders’ operational needs.
Another challenge reported by lenders has been the question of how soon PPP loan funds must be disbursed, and ABA and the state associations have aggressively sought clarity from SBA and Treasury, particularly amid the choppy rollout of the PPP. According to the latest FAQs, the lender must make the first disbursement of the loan no later than 10 calendar days after the loan is approved.