Wednesday, October 20, 2021

Congress reaches deal on stimulus spending package

Congressional leaders reached a deal Sunday night on a roughly $900 billion spending package to bolster the U.S. economy amid the continued coronavirus pandemic.

While the legislative text has not yet been released, the deal reportedly includes $284 billion in new funds for the Paycheck Protection Program, including a second draw option for prior PPP borrowers, and a new round of $600 economic impact payments.

The OBA will stay in contact with the ABA as we await the exact legislative text on the package so as to analyze and pass the information on to our member banks.

Earlier this morning, the OBA heard from Dustin Allen, with the Small Business Administration, concerning the new stimulus package. This is what he said to us:

I wanted to send a quick note on the possible new stimulus bill. It appears Congress has come to an agreement and are hopeful they will get something passed by COB today. This bill does appear to provide another round of PPP loans, EIDL funds and change some of the program rules. I want to remind everyone that until the bill has been passed, signed and our HQ has provided guidance in the way of Interim Final Rules we will not know exactly what that means for us. Going off the original CARES Act and the modification in June it took a week or two between the passing of the bill and our guidance rolling out. I am not personally able to provide info on what the changes and guidance will be. I, like you, will have to wait until we roll out the new Interim Final Rules governing the changes. In the meantime, I advise all of you to keep an eye on the SBA and Treasury’s websites as this is where the guidance will first become available.

He provided a pair of links for bankers to bookmark and visit over the next few days as we await more information.

The OBA will continue to monitor all updates and information out of Washington concerning the spending package and keep our member bankers updated.