FIL-50-2020
April 25, 2020
Small Business Administration (SBA) and U.S. Department of Treasury Announce Availability of New Paycheck Protection Program Loans
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Summary:
The Small Business Administration (SBA) together with the U.S. Department of Treasury announced on April 24, 2020 that the SBA will resume taking applications on the Paycheck Protection Program (PPP) on April 27, 2020. Applicants must already be certified SBA lenders.
Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter (FIL) applies to all FDIC-supervised institutions.
Highlights:
- The SBA will resume accepting PPP applications from participating lenders beginning on Monday, April 27, 2020, at 10:30am EDT Learn more on the SBA’s Paycheck Protection Program webpage.
- The PPP is designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans if certain criteria are met, such as keeping employees on the payroll and using the money only for specified purposes.
- FDIC has provided updated FAQs for banks interested in PPP. They can be found on the agency’s dedicated webpage for Coronavirus (COVID-19) Information for Small Business Lenders.