Congress Passes PPP Replenishment
Dear WANADA Members,
If you have not yet received approval for a PPP loan, you will need to re-apply once President Trump signs the bill and the SBA begins receiving new applications. We anticipate this process re-opening within the next few days at the latest, if not sooner than that. If you are a multi-dealership franchisor, and will need SBA franchisor codes during the application process,
you can find those franchise codes here.
In this new rescue bill, $60 billion of the PPP funds will be disbursed by lenders that hold under $50 billion in assets, which is designed to ensure that more funds go out through community banks and smaller credit unions.
With that in mind, if y
ou do not have a pre-existing relationship with an SBA 7(a) Lender, you can find one at
sba.gov/lendermatch
once the PPP fund is replenished. Please refer to the SBA's
FAQ page for lenders and borrowers
for more information, which will likely be revised once the law is signed.
Beyond that, it does not appear as if this latest bill changes anything in the PPP borrowing process, though there are ongoing efforts in Congress to increase transparency and disclosure information of PPP loan recipients.
As we mentioned, the Economic Injury Disaster Loan program will also receive an additional $60 billion in funding; the EIDL program can be a useful resource for small businesses who may have expense problems that aren't well-served by the PPP. The EIDL provides up to $10,000 in grant funding, and as much as $2 million in loans, for businesses who are not also taking advantage of the PPP funding.
NADA Legislative and Regulatory Guidances
NADA has recently updated several important resources -- namely, their
CARES Act guidance, which covers the PPP and EIDL programs, and their
guidance on how to ensure those who receive PPP funds get the most loan forgiveness possible.
They have also published
an updated guide to the expanded paid sick and emergency leave provisions under the Families First Coronavirus Response Act, which was signed into law in March and which took effect on April 1. We thank NADA for their excellent work, both as dealer advocates and communicators, who have helped us make sense of the many complex resources and mandates that have come about as a result of this pandemic.
Summary
We will update you with any additional resources that the federal government or our association partners produce regarding the new rescue bill that adds funding to these vital Small Business Administration programs. As always, please feel free to contact me or Joe Koch (
jk@wanada.org) at any time.
