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DC Chamber of Commerce shares important information from the United States Chamber of Commerce and the U.S. Small Business Administration
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Updates from the United States Chamber of Commerce
on the Federal CARES ACT
Today's Top Take:
Daily intelligence brief directly from U.S. Chamber Chief Policy Officer Neil Bradley
Today, the Treasury Department released initial information for lenders and small businesses for the Paycheck Protection Program – the program that provides $349 billion in loans for small businesses, the self-employed, and independent contractors. These loans can be converted into grants based on an employer’s expenses.
Small business can begin applying for these loans this Friday, and the application is now available online.
To learn more visit the Treasury Department
website
.
NUMBERS TO KNOW:
- $350 Billion: Amount of loans now available to small businesses.
- 100 Million: Number of respirators to be produced by 3M each month.
- <500: Businesses with fewer than 500 employees can be eligible for emergency loans.
CHAMBER IN ACTION
The latest news, actions, and announcements from the U.S. Chamber
The international regulatory landscape is rapidly evolving.
The Chamber has built a
global dashboard,
tracking developments across 32 countries. We’ll continue to update this tool with new data and encourage members to
send feedback and updates
.
This week, we’ve focused on India’s lockdown and new export restrictions in the EU.
Tracking COVID-19 financial services issues.
The Center for Capital Markets Competitiveness is tracking regulatory and legislative actions surrounding the coronavirus crisis that is of interest to the financial industry.
Contact CCMC
for more information.
Great Pause begins to show in economic data.
The Great Pause’s impact is starting to show up in more data. Consumer confidence fell 10% in March. Although steep, this was less than anticipated. Manufacturing fell off, unsurprisingly. An interesting data point is hours worked by hourly workers, which fell enormously. The rest of the week brings labor market data, which we’ll report here. -- U.S. Chamber Senior Economist Curtis Dubay
DUTY CALLS, BUSINESS RESPONDS
Abbott has launched a test that can detect COVID-19 in
as little as 5 minutes
and plans to supply 50,000 tests per day starting April 1.
FIVE READS
GUIDANCE AND RESOURCES
We will update and add to the links below as new guidance and resources become available
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With $349 Billion in Emergency Small Business Capital Cleared, SBA and Treasury Begin Unprecedented Public-Private Mobilization Effort to Distribute Funds
Release Date
: March 31, 2020
Release Number:
20-29
WASHINGTON –
Following President Trump’s signing of the historic Coronavirus Aid, Relief, and Economic Security (CARES) Act, SBA Administrator
Jovita Carranza
and Treasury Secretary
Steven T. Mnuchin
today announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need.
The CARES Act establishes a new $349 billion Paycheck Protection Program. The Program will provide much-needed relief to millions of small businesses so they can sustain their businesses and keep their workers employed. “This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly. Our goal is to position lenders as the single point-of-contact for small businesses – the application, loan processing, and disbursement of funds will all be administered at the community level,” said Administrator Carranza. “Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”
“This legislation provides small business job retention loans to provide eight weeks of payroll and certain overhead to keep workers employed,” said Secretary Mnuchin. “Treasury and the Small Business Administration expect to have this program up and running by April 3rd so that businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day. The loans will be forgiven as long as the funds are used to keep employees on the payroll and for certain other expenses.” The new loan program will help small businesses with their payroll and other business operating expenses. It will provide critical capital to businesses without collateral requirements, personal guarantees, or SBA fees – all with a 100% guarantee from SBA. All loan payments will be deferred for six months. Most importantly, the SBA will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
The Paycheck Protection Program is specifically designed to help small businesses keep their workforce employed. Visit
SBA.gov/Coronavirus
for more information on the Paycheck Protection Program.
- The new loan program will be available retroactive from Feb. 15, 2020, so employers can rehire their recently laid-off employees through June 30, 2020.
Loan Terms & Conditions
- Eligible businesses: All businesses, including non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees, or no greater than the number of employees set by the SBA as the size standard for certain industries
- Maximum loan amount up to $10 million
- Loan forgiveness if proceeds used for payroll costs and other designated business operating expenses in the 8 weeks following the date of loan origination (due to likely high subscription, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs)
- All loans under this program will have the following identical features:
- Interest rate of 0.5%
- Maturity of 2 years
- First payment deferred for six months
- 100% guarantee by SBA
- No collateral
- No personal guarantees
- No borrower or lender fees payable to SBA
SBA’s announcement comes on the heels of a series of steps taken by the Agency since the President’s Emergency Declaration to expeditiously provide capital to financially distressed businesses affected by the Coronavirus (COVID-19) pandemic. Since March 17, SBA has taken the following steps:
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