July 29, 2020
By: Caity Witucki
Contributing Editor, C-Suite Wednesday
C-Suite Wednesday – Lenders Anticipate Changes to PPP Forgiveness and SBA Coronavirus Relief
Over the past month and a half, congressional leaders have proposed numerous changes to PPP forgiveness and SBA coronavirus relief. According to the latest polls conducted during the Coleman Report Live daily show, 3 out of 4 participating SBA lenders anticipate one of the changes to be blanket forgiveness for PPP loans under $150,000. Other anticipated changes include an extension of PPP past the August 8th application deadline, set-asides for businesses with high rates of revenue loss, and the opportunity for some small businesses to obtain a second PPP loan.
Here are the highlights from this week’s polls:
- 75% of lenders anticipate PPP will not run out of funding before the current application deadline.
- 7 out of 10 SBA lenders say that they expect PPP to be extended through December 31, 2020.
- If PPP is extended past the current application deadline, 41% of SBA lenders polled say that they will continue making PPP loans.
- 58% of SBA lenders agree with the U.S. Treasury Secretary that loans under $150,000 should have a simplified PPP forgiveness application. However, 34% say that the simplified application should be extended to loans under $500,000.
- 1 out of 4 PPP lenders say that they approve of the recently proposed Continuing Small Business Recovery and Paycheck Protection Program Act.
- If the Continuing Small Business Recovery and Paycheck Protection Program Act becomes law, 34% of SBA lenders say that they will offer a Second Draw PPP loan, which allows certain small businesses with a 50% revenue loss or higher to receive a second PPP loan.
The Senate is currently working on creating a bipartisan stimulus bill that would implement many of these changes. A vote is expected before Congress breaks for summer recess on August 10th.
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