Mon, June 22, 2020
PPP LOAN FORGIVENESS UPDATE
The Small Business Administration released new loan forgiveness updates this week that will give many borrowers an easy pathway to having their debt eliminated. As of June 12th, 355,985 Florida businesses have received a PPP loan, totaling over $30.8 billion in approved funding. Nationwide, the three top industries to receive a PPP loan are health care, professional, scientific and technical services, and construction. Accommodation and food services, and retail trade account for about 15 percent of the nationwide funding. To date, there is roughly $130 billion remaining for loans with the application window closing June 30, 2020. The SBA, in conjunction with the U.S. Treasury has updated a number of documents, including: guidance and rules, loan application, loan forgiveness application, and instructions to address the changes made in the recently passed Paycheck Protection Program Flexibility Act
EIDL Funding Updates
The U.S. Small Business Administration announced on June 15th the reopening of the Economic Injury Disaster Loan and advances to all small businesses. The loan program was shut down temporarily for only agricultural businesses to apply. As of June 12th, over 320,186 Florida businesses received EIDL advances totaling nearly $975 million. 130,780 businesses in Florida received an EIDL loan, for a total of $7.9 billion in funding. Florida ranks second in both the amount of money loaned and the number of loan applications approved. Click here for more details
Main Street Lending Program
Once again, the Federal Reserve Board is expanding the Main Street Lending Program to allow additional small and medium sized businesses to participate. The changes include lowering the minimum loan size to $250,000 from $500,000 (which was once $1 million), increasing the term of each loan option from four years to five years, and extending the repayment period by delaying principal payments for two years. With these announced changes, the Federal Reserve also released updated lending program forms and an updated FAQ for the Main Street Lending Program. The program is now operational and lenders can find the necessary registration documents here, and eligible lenders can now register through the program's lender portal. You can learn more information by clicking here.
Additionally, the Federal Reserve Board is soliciting feedback on expanding the Main Street Lending Program to nonprofit organizations. The borrower eligibility they are reviewing for the nonprofit sector is a minimum of 50 employees and maximum of 15,000, an operational history of at least five years and a limit on endowments of no more than $3 billion. Under the proposal, organizations would have to be a 501(c)(3) or 501(c)(19). For more information and to provide feedback, visit here. The deadline for feedback is Monday, June 22.