Small Business Administration

Federal Reserve Board Announces the Second Extension of a Rule to Bolster the Effectiveness of the SBA’s PPP

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On February 9, The Federal Reserve Board announced the second extension to a temporary modification of the Board’s rules that allows certain bank directors and shareholders to apply to their banks for Small Business Administration Paycheck Protection Program (PPP) loans for their small businesses. The modification is intended to improve the effectiveness of the PPP. Prior to this modification, limits on the types and quantity of loans that bank directors, shareholders, officers and businesses owned by these persons can receive from their affiliated banks prevented some small business owners from accessing PPP loans. The rule extension is effective immediately and applies to PPP loans made through March 31, 2021. Release.

SBA and Treasury Announce Simpler PPP Forgiveness for Loans of $50,000 or Less

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On October 8, the Small Business Administration (SBA), in consultation with the Treasury Department, released an Interim Final Rule providing for a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. The new rule is intended to ease burdens on small borrowers and PPP lenders in submitting and processing loan forgiveness applications. Treasury Press Release. Interim Final Rule.

Federal Reserve Rule Change Allows Bank Directors and Shareholders to Receive PPP Loans

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On July 15, the Federal Reserve Board (FRB) announced it was extending a recent rule change relating to the Small Business Administration’s Paycheck Protection Program. The rule change will allow certain bank directors and shareholders to apply to their banks for PPP loans for their small businesses. The rule change is effective immediately and will remain effective while the PPP is active. Release.

SBA and US Treasury Release PPP Loan Forgiveness Application and Related Guidelines

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On May 15, the Small Business Administration (SBA) and the Department of the Treasury (USDT) released the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions for the application. The form and accompanying instructions include measures intended to reduce compliance burdens and simplify the application process for borrowers. Release.

Federal Reserve Announces its Paycheck Protection Program Liquidity Facility is Fully Operational and Available to Provide Liquidity to Eligible Financial Institutions

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On April 16, the Federal Reserve announced that its Paycheck Protection Program Liquidity Facility is fully operational and available to provide liquidity to eligible financial institutions, which will help support small businesses. The Small Business Administration’s Paycheck Protection Program, or PPP, guarantees loans extended by qualified lenders to small businesses so that those businesses can keep workers employed. Release.

Federal Bank Regulators Issue Interim Final Rule for Paycheck Protection Program Facility

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On April 9, the federal bank regulatory agencies today announced an interim final rule to encourage lending to small businesses through the Small Business Administration’s Paycheck Protection Program (PPP). The interim final rule modifies the agencies’ capital rules to neutralize the regulatory capital effects of participating in the Federal Reserve’s PPP facility because there is no credit or market risk in association with PPP loans pledged to the facility. Consistent with the agencies’ current capital rules and the CARES Act requirements, the interim final rule also clarifies that a zero percent risk weight applies to loans covered by the PPP for capital purposes. The rule is effective immediately. Release.