April 14, 2020
By: Caity Witucki
Contributing Editor, Hot Topic Tuesday
Hot Topic Tuesday – Rubio Releases Update on PPP Improvements
U.S. Senator Marco Rubio, Chairman of the Senate Committee on Small Business and Entrepreneurship, recently released an update on improvements being made to the Paycheck Protection Program (PPP).
“Recent reports indicate that the Paycheck Protection Program has already saved an estimated 12.3 million jobs,” says Rubio. “In a time of economic uncertainty, keeping America’s small businesses employed is critical. The implementation of the program is moving in the right direction, and it has to as businesses need cash in their hands now. I appreciate the around-the-clock work that the Administration is doing to address the challenges of the program, and their continued engagement with the SBA and Treasury to ensure these improvements are happening.”
The SBA, U.S. Treasury, Federal Reserve, and Congress have made the following improvements to the PPP loan program:
- Last Wednesday, the U.S. Treasury released a non-SBA application and lender portal so that new banks and non-bank lenders could participate in the PPP lending program.
- On Thursday, the Federal Reserve announced its intent to create a secondary market for PPP loans and relax regulations on bank leverage ratios.
- The U.S. Treasury released an updated FAQ document that allows lenders to use their own note or an SBA promissory note.
- SBA E-Tran’s server capacity has been increased and additional resources are being devoted to assisting lenders with technical issues.
As a result of the improvements, over 880,000 PPP applications have been processed and approved, totaling $217 billion. With just 38% of the CARES Act’s allocated appropriations left, the Senate has turned its focus to replenishing the diminished funds. However, the Senate want to ensure additional funding is also allotted to essential services and medicine.