Saturday, July 20, 2024

Preparing for round two of the PPP

Breaking news from the ABA:

The House is expected this afternoon to approve the bill providing an additional $320 billion in funding for the SBA’s Paycheck Protection Program. The president will sign it expeditiously, and the Treasury has said it will work to get the appropriation to SBA ASAP. We therefore expect the E-Tran system to be reopened as early as Friday morning.

Importantly, I have asked Treasury officials to give lenders a heads up before turning on the system, and I will relay any such notice to you immediately when/if that occurs.

As you prepare for round two, which will undoubtedly have your employees again working around the clock to assist small businesses in need, be aware of inquiries that could head your way about whether and how your bank is prioritizing applications. Lawmakers, attorneys general and investigative reporters alike have begun probing this topic, just as reporters have been scrutinizing the types of businesses that have received PPP loans. On the latter point, the SBA today issued an updated FAQ effectively warning larger businesses that may meet the size qualifications but have access to other funding to take seriously the program’s borrower attestation requirements.

Finally, as always, please share your success stories with the PPP so [the OBA and the] ABA can amplify your good news. This front-page Washington Post story is an excellent example of what can happen when banks take the time to document, photograph and tell their stories.