New Interim Final Rules
Paycheck Protection Program guidance: Interim Final Rule on Loan Forgiveness, click here to read on the Treasury website Interim Final Rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities, click here to read on the Treasury website We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available.
Continue ReadingPaycheck Protection Program Updates from Treasury for April 27, 2020
Latest updates available on the Treasury website for: Interim Final Rule on Additional Criterion for Seasonal Employers, click here to read; Paycheck Protection Program FAQs, click here to read the latest version; and; How to Calculate Maximum Loan Amounts (by Business Type), click here to read. We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Please feel free to pass these announcements along to your colleagues and they can click here to sign up for our newsletters.
Continue ReadingSBA Procedural Notice 5000-20020
Latest updates available for: SBA Procedural Notice 5000-20020, click here to read the update on the Colson Services website. Paycheck Protection Program FAQs, click here to read the latest version on the Department of Treasury website. We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Please feel free to pass these announcements along to your colleagues and they can click here to sign up for our newsletters.
Continue ReadingPaycheck Protection Program Update for April 13, 2020
The Treasury released an updated Paycheck Protection Program FAQ today (click here to read). We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Please feel free to pass these announcements along to your colleagues and they can click here to sign up for our newsletters.
Continue ReadingPaycheck Protection Program Update for April 11, 2020
Late last night, the Treasury released an updated Paycheck Protection Program FAQ (click here to read). Notably, it confirms that lenders do not need a separate SBA authorization for the SBA to guarantee a PPP loan. We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Please feel free to pass these announcements along to your colleagues and they can click here to sign up for our newsletters.
Continue ReadingPaycheck Protection Program Update for April 8, 2020
Additional information has been released within the last 24 hours, including this updated Paycheck Protection Program Frequently Asked Questions (click here to access). Notably, the deadline to close loans has been extended to ten (10) calendar days from the date of loan approval. We expect that there will continue to be further guidance, processes, and procedures issued which we will continue to provide updates once available. Please feel free to pass these announcements along to your colleagues and they can click here to sign up for our newsletters.
Continue Reading“Payroll Protection Loan Applications Start Friday” – Finance and Commerce – 2020
Originally published on “Finance & Commerce” Companies taking a hit from the COVID-19 pandemic can start applying for federal payroll assistance as soon as this Friday. The Paycheck Protection Program, created under last week’s CARES Act, will offer low-interest, forgivable loans that companies can use to maintain payroll and other essential expenses. The act, signed into law Friday, ordered the U.S. Small Business Administration to issue guidelines and regulations for the program within 15 days. On Tuesday, the agency announced initial guidance and published application materials. Companies of fewer than 500 employees, including sole proprietorships, can apply starting April 3, and independent contractors and self-employed workers can apply starting April 10. The new loans are unlike any federal program before in both the speed of their rollout and their simplicity for applicants, said Bruce Strong, state director for the Minnesota Small Business Development Centers. “These are unprecedented amounts of relief coming in the form of these bills, and the terms of the relief are staggering,” Strong said in an interview. “To think a business can get through this Payment Protection Program a forgivable loan up to $10 million … obviously has never happened before and likely will never happen again.” The actual amount for which a company is eligible is calculated at 2.5 months of payroll expenses, using the company’s average over the preceding 12 months, up to that $10 million, said Nick Jellum, an attorney and president at Stillwater-based Jellum Law who regularly works with lenders that provide SBA Express loans. Loan proceeds that are spent on eligible business expenses, including payroll, utilities, rent and mortgage interest within eight weeks will be forgiven, assuming the company maintains, or quickly rehires to, its pre-coronavirus level of employment and wages. Any amount not forgiven must be repaid within two years, the SBA announced Tuesday, at 0.5% interest. All SBA loans, including through the Payment Protection Program, will have all payments deferred for six months under a provision of the CARES Act championed by Minnesota Sen. Amy Klobuchar along with Sens. Chris Coons, D-Delaware, and Ben Cardin, D-Maryland. “I think it is a great program for not just borrowers but also lenders, and certainly employees,” Jellum said of the Payment Protection Program. “My biggest concern going into this was, is the government going to make the program attractive to lenders to participate in it? And the answer to that is absolutely, yes.” Among other enticements to lenders, compliant loans are fully guaranteed by the SBA. Furthermore, the bill sweetens the pot with processing fees, paid to lenders by the government, of at least 1% of loan value, or as high as 5% for loans of $350,000 and below. Applicants will not pay any fees. “This is really unheard of for SBA to actually pay lenders what would be considered an origination fee,” Jellum said, adding that he’s hearing from some banks that have not historically offered SBA loans but are exploring taking part in this new program. The processing fee will be the primary revenue stream for banks that process payment protection loans, since the interest rate is so low and so […]
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