Breaking news from the ABA:
By a strong bipartisan vote this evening, the House cleared legislation providing more than $320 billion in new funding for the Small Business Administration’s Paycheck Protection Program. The Senate passed the bill earlier this week, and President Trump is expected to sign it shortly.
Of the more than $320 billion appropriated for PPP loans, a minimum of $30 billion will be set aside for community development financial institutions, banks and credit unions with less than $10 billion in assets. Another $30 billion at least will go to banks and credit unions with assets between $10 billion and $50 billion. (Institutions in these categories may originate PPP loans above these levels.) The bill also includes an additional $60 billion in funding for the SBA’s Economic Injury Disaster Loan program and provides long-sought clarity that agricultural businesses may apply for EIDL funds.
ABA has been urging lawmakers to approve additional funding for the PPP since the program first ran out of funding on April 16, and President and CEO Rob Nichols welcomed this much-needed action by the House. In an update to bank CEOs earlier today, Nichols said he has asked Treasury officials to give lenders advance notice of when SBA’s E-Tran system might be reopened so that they can be ready to enter applications. ABA will share such advance notice when it is issued. View the bill text.