Democrats have started a list of priorities for the next Coronavirus relief bill. Among others, they are seeking more assistance for state and local governments, food assistance, and funding for vote-by-mail. In contrast, Senate Republicans are advocating the inclusion of language to help shield businesses from lawsuits as states begin to reopen their economies.
On Monday, April 27, 2020, the Small Business Administration (SBA) faced technical challenges as the Agency began accepting loan applications for the Paycheck Protection Program (PPP). It is reported that by 3:30 p.m., the SBA processed 100,000 loans submitted by 4,000 lenders. However, the Department did not say how much of the $310 billion had been allocated through those loans.
Amid the replenishment of PPP and EDIL, Senate Small Business and Entrepreneurship Chairman, Marco Rubio (R-FL) sent a letter to the SBA and Department of Treasury urging regulators to issue immediate guidance for the participation of CDFIs and minority depository institutions. The guidance requests include:
- Setting aside $2 billion of the $30 billion set-aside for CDFIs and minority depository institutions;
- Prioritizing the approval of CDFI and minority depository institutions as eligible lenders;
- Reducing the prior lending volume requirement for these institutions;
- Establishing safe harbors for these institutions in relation to compliance with the Bank Secrecy Act; and,
- Outlining parameters for secondary market sales, and facilitating the sale of PPP loans to provide these institutions with the ability to recapitalize and continue making loans to small businesses, including the eligibility of such institutions to access liquidity through the Federal Reserve’s PPP Lending Facility.
To view the full letter, click here.