The revocation follows the SBA’s move to halt 2,965 previously approved applicants payments on June 14 following lawsuits in Texas and Tennessee. When funds of the $28.6 billion program ran dry, three restaurants took aim at the RRF’s call to prioritize race and sex in its grant distribution.
Source: FSR Magazine
PPP “overfunding” occurs anywhere a good faith error results in a borrower receiving more than he or she is qualified to have forgiven. Yet, calling it a “good faith error” or “a typo” doesn’t quite capture the magnitude of an error that might mean a small business owes $10,000 on what was understood to be a forgivable loan in a crisis.
Source: The Baltimore Sun
The measure addresses a disparity in the program that sprang from modifications made by Congress and the Small Business Administration. After the initial rollout, the modifications allowed farmers, ranches and small businesses to have their loans recalculated based on gross income, not net profits.
Source: Spectrum News
Earlier this month multiple government officials and Congresspeople, including Senators Amy Klobuchar and John Cornyn, who authored the bipartisan “Save Our Stages” act, effectively told the SBA to get its act together. However, fewer than 10% of the venues who have applied for relief have received funds.
The federal government as well as corporations and at least one bold name philanthropist are injecting money into CDFIs. This round of investment may help boost their efforts to help people escape from crippling payday loan debt and avoid the toxic impact of predatory lending.
Source: Consumer Reports