March 25, 2020
By: Caity Witucki
Contributing Editor, C-Suite Wednesday
C-Suite Wednesday – Senate is Close to Passing $2 Trillion Coronavirus Aid Package
Treasury Secretary, Steven Mnuchin, and Senate Minority Leader, Chuck Schumer, say they are “very close” to an agreement on the nearly $2 trillion coronavirus economic rescue package, raising the possibility of a Senate vote on the legislation any day. Speaker of the House, Nancy Pelosi, adds that she “hopes”that the House will vote on her package of up to $2.5 trillion this week, so the bills can be conferenced and signed over to the President.
Once the Coronavirus Aid, Relief, and Economic Security (CARES ) Act is signed by the President, the SBA may need up to a month to implement the changes. However, Brent Ciurlino, a former SBA OCRM employee, remains optimistic. ” I think if they use the bank lenders in the program, the SBA can get guidance out within 2 weeks,” says Ciurlino in yesterday’s Coleman Report Live! “I know they’re trying to build in 30 days, but they have got to get interim guidance out.”
Currently, the third amended version of the CARES act includes the following for SBA.:
- Nearly $300 billion in SBA 7(a) loan authority
- Increases SBA 7(a) maximum loan size to $10 million loan and $1 million maximum for SBA Express.
- A 100% government guaranty on the full balance
- All Lenders approved by the SBA to make 7(a) ions will delegated authority to be able make and approve loans based on an evaluation of the eligibility of the borrower.
- Eligibility includes business and/or nonprofit which employ less than 500 employees.
- Funds may be used for payroll support, employee salaries, mortgage payments, rent, utilities, and debt obligations incurred before the covered period.
The proposed legislation also notes that if the bill is enacted, SBA Administrator, Jovita Carranza, has 30 days to advise lenders of fee waivers and provide guidance on deferments.
More to follow…