SBA Loan Applications Accepted April 3 – June 30, 2020
March 27 – Coronavirus Aid, Relief and Economic Security Act (CARES) passed, providing $350 billion for small businesses under the Small Business Administration’s (SBA) new Paycheck Protection Program (PPP).
April 9 – New and expanded lending programs authorized by the CARES Act were announced by the Treasury Department and Federal Reserve. The Main Street Business Lending Program provided up to $600 billion in new financing for businesses with up to 10,000 employees or $2.5 billion in annual revenues. The National Association of Manufacturers (NAM) provided an excellent FAQ document regarding these programs.
April 23 – Senate passes a new Covid-19 relief package including $320 billion in funding for the PPP. SBA issues an updated FAQ document.
April 27 – Paycheck Protection Program relaunched. The Small Business Administration released new resources for businesses applying for loans under this second wave of funding. This includes an overview of how companies can calculate loan amounts, an updated FAQ document on how to count employees and a new interim final rule with guidance on affiliation and eligibility issues. SBA also announced that individual banks will be limited to processing 10% of the total PPP funding and discouraged certain larger businesses and publicly traded companies from applying for the program. The SBA has further created a safe harbor to allow such companies to return any funds received before May 7 with no penalty. Larger companies can still explore financing options such as the Federal Reserve’s liquidity facilities funded by the CARES Act.
May 15 – The SBA and Treasury Department released information on how small businesses can apply for loan forgiveness under the Paycheck Protection Program (PPP). The Loan Forgiveness Application explains how to calculate the forgiveness amount, determine eligible payroll and non-payroll costs, document eligibility for loan forgiveness and apply the CARE Act's safe harbor for remedying payroll or headcount reductions.