From Tangipahoa Parish Government
The Federal Reserve Board announced that it is expanding the scope and eligibility for the Main Street Lending Program.
As part of its broad effort to support the economy, the Federal Reserve developed the Main Street Lending Program to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic.
When the initial terms of Main Street were announced, the Board indicated that, because the financial needs of businesses vary widely, it was seeking feedback from the public on potential refinements.
More than 2,200 letters from individuals, businesses, and nonprofits were received. In response to the public input, the Board decided to expand the loan options available to businesses, and increased the maximum size of businesses that are eligible for support under the program.
See information about changes here: https://buff.ly/2y5TFhM
U.S. Small Business Administration Update
From now on, SBA systems will only accept loan applications from lenders with asset sizes less than $1 billion dollars. We know many of our smallest small businesses rely on community lenders for their banking needs.
To ensure access to the PPP loan program for the smallest lenders and their small business customers we are limiting access to the loan application portal. As of today, these smaller lending institutions will still be able to submit PPP loans, outside of this time frame.
The first 24 hours the money became available, SBA had approved $28 billion from banks with assets less than $10 billion. This represents about 60% of the total amount approved the first 24 hours.
To further ensure PPP loans are limited to eligible borrowers, the SBA has decided, in consultation with the Department of Treasury, that it will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application. Regulatory guidance implementing this procedure will be forthcoming.
Although the reserved processing time for small banks applies today April 29, 2020, SBA and Treasury will evaluate whether to create a similar reserved time again in the future.
SBA and Treasury continue to monitor loan system performance and will continue to provide frequent updates to the lending community.
For additional information and resources visit https://buff.ly/2y5TFhM