More details emerge on PPP 2.0. Our existing group is queued up for reload assuming each business qualifies under new guidelines. PM me or CaboWabo if you want to take the 2.0 ride with us. We’ve relaxed our PPP cap and can comfortably assist more:
COVID RELIEF BILL DETAILS EMERGE AS VOTING BEGINS ON THE HILL
5,593. That is the number of pages in the "Consolidated Appropriations Act, 2021" -- the COVID relief bill that has passed the US House and is likely to pass the Senate later this evening. It is thought to be the largest bill in Congressional history. There are A LOT of nooks and crannies in a bill of this length, so it will take some time to comb through it to identify all the banking-related impacts. However, here are key elements of the legislation:
HIGHLIGHTS
Small Business Provisions:
What will the second round of PPP look like?
● First time applicants will be allowed;
● Previous PPP borrowers are eligible for “PPP second draw” loans if they can demonstrate at least a 25% reduction in gross receipts;
● Borrowers in the Accommodations and Food Services industries (NAICS Code 72) may receive loans up to 3.5X average monthly payroll costs, all other industries will be at the original 2.5X monthly payroll costs calculation;
● Lender compensation will be tiered: for loans up to $50,000, the lender process fee will be the lesser of 50% of the principal amount or $2,500; for loans between $50,000-$350,000, the lender fee will be 5%; and for loans $350,000 and above, the lender fee will be 3%;
● Simplified forgiveness for loans of $150,000 and below. While this provision isn’t exactly the language found in Sen. Cramer’s S. 4117, he was able to get the one-page attestation and final language much closer—definitely an improvement;
● PPP program is set to expire on March 31, 2021;
● The bill repeals the EIDL Advance Deduction and directs the SBA to issue rules that ensure borrowers are made whole if they received forgiveness and their EIDL was deducted from that amount.
PPP Timing?
We do not know when the PPP pipeline will be reopened. We do know that the SBA must publish the one-page loan forgiveness attestation within 24 days of enactment. We will continue to update you as information becomes available.
More details on these items and fee information contained in the bill's small business provisions can be found HERE.