Small Business Administration

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

 

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

 

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

 

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.