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The Small Business Administration (SBA) provided several updates to financial institutions this week regarding the rollout of the Paycheck Protection Program (PPP).
Loan Notes
The SBA’s Maine District office informed lenders that they can use their own documents to close PPP loans. The SBA is still finalizing documents credit unions can use, but for now credit unions participating in the program can proceed with disbursing these loans using their own documents.
The timeline for closing PPP loans has been extended to ten days. Although still aggressive, it’s better than the five-day deadline the SBA originally had established.
In addition, the SBA is requiring that funds be used within eight weeks after the loan closing, even if the business is not open. The goal is to get people back on the payroll as quickly as possible, regardless of whether they are working.
Loan Authorization Form
The SBA is working on a loan authorization form, which can be completed after the loan closing since they have not yet been provided.
FAQs
The SBA in consultation with the Treasury Department released a new FAQ document for PPP containing guidance for some of the most commonly asked questions. This document also is posted on the League’s COVID-19 Resource Center.
Lender-Only Call Number
The SBA has created a new lender-only call center number. To contact the SBA at this number, dial 833-572-0502.