COVID-19 UPDATES
Congress Set to Consider CARES 2.0 Soon
Discussions around a Coronavirus Aid, Relief, and Economic Security (CARES) Act 2.0 package are on track for consideration in Congress in the coming weeks. With Congress set to head back to their districts next month due to the August recess, topics like PPP loan forgiveness, more state and local aid funds, extension of unemployment benefits and additional stimulus money will be the focus of House and Senate leadership.
SBA Planning PPP Loan-Forgiveness Portal
The Small Business Administration will soon release a portal to accept Paycheck Protection Program loan-forgiveness applications, Administrator Jovita Carranza told the House Small Business Committee last week. The SBA is working with the Department of the Treasury to offer the portal by the beginning of August, she said.
Also at the hearing, Treasury Secretary Steven Mnuchin said Congress should consider automatically forgiving smaller PPP loans. Read more from the hearing.
USDA, SBA Loans Exempt From Environmental Rule
The Council on Environmental Quality issued a final rule to exempt USDA- and SBA-guaranteed loans from proposed environmental impact statement requirements under the National Environmental Policy Act.
Fed Expands Nonprofit Access to Main Street Program
The Federal Reserve Board expanded access to the Main Street Lending Program for nonprofit organizations. Among the changes, the Fed reduced the minimum employment threshold for nonprofits from 50 employees to 10. Nonprofit loan terms generally mirror those of for-profit business loans.
The final eligibility requirements as revised from the Fed’s June proposal are:
• At least 10 employees, down from 50.
• Non-donation revenues representing at least 60% of revenues in 2017-19, down from 70%.
• A 2019 operating margin of 2%, down from 5%.
• Sixty days of cash on hand, down from 90.
• Debt repayment capacity of at least 55%, down from 65%.
FHFA Extends Housing Goals Due to COVID-19
The Federal Housing Finance Agency’s proposed 2021 housing goals for Fannie Mae and Freddie Mac that are unchanged from 2018-2020 due to the COVID-19 pandemic. Once finalized, the proposed levels would extend benchmarks set to expire on Dec. 31, 2020.
Action Alert: Ask the Senate to Simplify Forgiveness for PPP Loans $150,000 and Under
The IBA is asking members to contact their senators in an effort to increase support for S. 4117, the Paycheck Protection Program Small Business Forgiveness Act. This bill has broad support from national trade associations and state banking associations across the country. Please contact your senators today and ask for their support to pass this legislation that will expedite the forgiveness process for the majority of borrowers that received loans through the PPP.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.