SBA PPP Small Business Loans: Second PPP Funding Round for SMBs
Tuesday, April 21, 2020
- PPP Funding – Second Round of Money: The Senate passed a $484 billion coronavirus relief plan, of which $251 billion will replenish the PPP program, CNBC reports. The house of representatives is expected to approve the plan by Thursday, April 23. Once President Trump signs on, the Small Business Administration (SBA) should equip banks with the new PPP loan process by late April or early May. Channel Partners seeking money from the plan should reach out immediately to small business lenders and community banks to see if they intend to support this latest round of lending. Among the tips to note: Regional banks and community banks were often more responsive than big banks during the first round of PPP inquiries, ChannelE2E believes.
Monday, April 20, 2020
- PPP Funding Update: Democratic leaders and the Trump administration are close to a deal to replenish the PPP program, multiple reports say. An official deal could arrive sometime between Monday and Wednesday, Bloomberg Radio reports.
- Shake Shack returned a $10 million PPP loan amid criticism that larger, decentralized companies with more than 500 employees participated in the SBA loan program.
- Lawsuit vs. Wells Fargo: A lawsuit alleges Wells Fargo unfairly shuffled Paycheck Protection Program applications, USA Today reports.
Friday, April 17, 2020:
- More PPP Funding?: The Trump Administration and Congress are still negotiating terms to potentially replenish the PPP program.
Thursday, April 16, 2020:
- Capital One – No PPP So Far: As PPP funds dwindle, Capital One is still not accepting applications, Washington Business Journal reports. As a result, Capital One customers are already starting to defect, the report says.
Wednesday, April 15, 2020:
- SBA PPP – Out of Money?: The PPP program is expected to run out of money later Wednesday, The Wall Street Journal reports. Negotiations between Congress and the White House resumed Wednesday over replenishing the program. As of Wednesday morning, the Small Business Administration said it had approved about 1.3 million applications, totaling more than $289 billion in loans, the report says.
- Beneficial State Bank is supporting PPP applicants in Oregon, Washington, and California. The bank has been awarded SBA approval for nearly 230 PPP applications worth $76.5 million, with 400 in-process from current and new customers collectively seeking more than of $100 million in loans, the bank says.
- SBA Lending Gateway: In response to the significant operational challenges banks experienced accessing the SBA’s systems to make PPP loans, the SBA launched a new Lender Gateway in partnership with Amazon Web Services to facilitate connection to the E-Tran system. The Lender Gateway has been used to process more than 20,000 loans, SBA Administrator Jovita Carranz tweeted on April 14.
- Wells Fargo PPP: After some early struggles, Wells Fargo seems to be making a newfound commitment to the PPP program. During an April 14 earnings call, CEO Charlie Scharf said the bank and lender has expanded its participation in the PPP program. “We’re quickly ramping up our processing capacity to respond to the significant demand we’ve seen,” he asserted. Through April 10, Wells Fargo has received more than 370,000 indications of PPP interest from customers. The bank “working with industry groups and the US Treasury in preparation to distribute millions of economic impact payments to Americans as quickly as possible,” he added. Still, Wells Fargo’s overall PPP efforts have faced challenges and criticisms — as outlined in the earlier ChannelE2E updates below.
Monday, April 13, 2020
- Square and PPP: Square Capital is the latest FinTech company approved to offer PPP loans. Find details here.
Sunday, April 12, 2020
- Intuit and PPP: Intuit Financing (better known as QuickBooks Capital) is now a non-bank SBA-approved lender for PPP. Find details here.
Saturday, April 11, 2020
- PPP — How to Avoid Misuse of Funds: What if the government investigates how you acquired and used PPP funds? Here’s how to stay in the right side of the law, according to former government prosecutors.
- Additional PPP Funding Stalls: A Trump administration request for quick approval of $250 billion in additional PPP loans stalled on April 9 in the Senate after Republicans and Democrats clashed over what should be included in the latest round of government relief, The New York Times reports.
Friday, April 10, 2020
- Citigroup has started accepting PPP applications, the banking giant confirmed on April 9.
- SBA Official Criticizes Big Banks: An SMBA official from Nevada chastised big banks, accusing them of purposefully slowing down a program to lend to small businesses hurt by the coronavirus, Business Insider reports.
- PayPal now supports PPP loans to merchants that use PayPal’s platforms in the U.S.
Thursday, April 9, 2020:
- Acronis and Lendio: The duo is partnering to help MSPs and channel partners access money more quickly from various sources — including the CARES Act and PPP program. Check the Acronis website for details on April 1, 2020.
- Kabbage is accepting PPP applications. This makes Kabbage the first online-only lender to officially accept PPP applications, CrossingBoard reports.
- Silicon Valley Bank & Startups: The tech-focused bank had processed close to 5,000 applications to the SBA’s Paycheck Protection Program April 7, The Information reports. But as many as 30 percent of those ran into issues requiring applicants to restart the process, the report said.
- Federal Reserve Vows $2.3 Trillion In New Assistance: The U.S. Federal Reserve unveiled programs on April 9 that will provide $2.3 trillion in loans for small and midsize businesses, U.S. cities and states. The announcement is in addition to the established SBA PPP program, ChannelE2E believes. Stay tuned for more updates on this.
- Idaho Loans: bankcda has secured $17 million in loan funds for over 160 small businesses through the PPP. These funds will preserve over 2,100 local jobs in North Idaho and the surrounding region, the banks ays.
Wednesday, April 8, 2020:
- JPMorgan Chase and Bank of America: They’ve received a combined 625,000 requests for $80 billion in PPP loans, CNBC reports.
- Wells Fargo Gets Green Light: The Federal Reserve said Wednesday that it will “temporarily and narrowly modify” the asset cap on Wells Fargo so the bank can lend more under the SBA Paycheck Protection Program, the Silicon Valley Business Journal reports.
- PPP – $71 Billion Allocated So Far: Over 71B has been disbursed, according to the federal government.
- Lending to New Customers: Republic Bank, based in Philadelphia, may be the only bank in the region that is taking PPP applications from both customers and non-customers, The Philadelphia Inquirer reports.
- Update – More PPP Funding: As expected, Treasury Secretary Steve Mnuchin has requested Congress to approve $250 billion in more funding for the PPP program. Also, Senate Majority Leader Mitch McConnell said that he will work with Minority Leader Chuck Schumer to approve additional funding by voice vote or unanimous consent.
- Community Bank Lending — Topped Out: Heartland Financial USA, a consortium of 11 community banks in 114 locations, is currently processing approximately $1.5 billion in Paycheck Protection Program loans. The Heartland consortium received over 7,000 requests for loans under the CARES Act Paycheck Protection Program in 72 hours. Heartland stopped accepting new requests for the program on April 6. Heartland serves 83 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado, Minnesota, Kansas, Missouri, Texas and California.
Tuesday, April 7, 2020:
- More PPP Funding: If or when the PPP program needs more funding, U.S. Treasury Secretary Steven Mnuchin says he will go back to Congress and seek those dollars, Mnuchin reiterated on FOX news.
- Wells Fargo PPP Limit Pressures Small Businesses: Wells Fargo can only lend $10 billion to small businesses seeking PPP loans, San Jose Business News reports. That’s only a small slice of the PPP program’s $350 billion asset pool. The $10 billion asset cap is in place following Wells Fargo’s fake-accounts scandal under former management. Ironically, the $10 billion cap now threatens to harm thousands of small businesses that are desperate for loans — but may not be able to get the money through Wells Fargo. Amid that pain, the Federal Reserve may ease the asset cap on Wells Fargo, the New York Times reported on April 6.
- PPP Loan System Outage: The SBA’s loan processing platform — known as E-Tran — went down April 6 for as long as four hours, temporarily halting the ability of lenders to process loans for small business owners seeking relief from the impact of the coronavirus, Bloomberg reports.
Monday, April 6, 2020:
- PPP Loan Calculator: Granite Creek Capital Partners and Theron Technology Solutions have launched free web-based tools for small businesses to estimate amounts available and forgiven under the Paycheck Protection Program (PPP).
- Bank of America has received applications from 177,000 small businesses for a total of $32.6 billion in financing — or roughly one-tenth of the PPP’s overall lending budget, CNBC reports.
Saturday, April 4, 2020:
- More Banks Support CARES Act, PPP Loans: In a 24-hour period, the SBA reactivated 30,000 licenses for community banks and credit unions of all sizes to get money to small businesses, SBA Administrator Jovita Carranz tweeted.
- Faith-based organizations are eligible for the PPP program and the Economic Injury Disaster Loan program, SBA Administrator Jovita Carranza says.
- Private Equity & Venture Capital Debate: The Treasury Department issued new guidance aimed at expanding access to the emergency small-business lending program, but some in Silicon Valley say it falls short of ensuring Venture Capital- and Private Equity-backed startups will be able to get aid, The Wall Street Journal reports.
Friday, April 3, 2020: Launch Day for SBA PPP Loans
- Bumpy Start: The PPP program launches but many small business owners seeking loans are greeted by confusion. The reason: Many banks are still working to understand program details from the SBA. Still, the federal government and banks assure small businesses that the issues will be ironed out. Roughly $350 billion will eventually flow through SMBs through the program, the SBA says.
- Day One Milestones: During the program’s first day, more than 1,100 lenders made loans to small businesses, SBA Administrator Jovita Carranza says.
- Bank of America in Day One of the PPP program worked with more than 85,000 customers that applied for $22.2 billion in loans.
- As of mid-afternoon Friday, among the largest U.S. lenders, only Bank of America and JPMorgan Chase were accepting applications for the program, CNBC reported.
Thursday, April 2, 2020 – One Day Before SBA Launches PPP Loans
- What If PPP Loans Run Out?: Don’t panic. Once the PPP loan pool dries up, U.S. Treasury Secretary Steven Mnuchin says he will go back to Congress and seek more funding for the program.
- PPP Launch Concerns: Major banks — such as JPMorgan Chase — tell The Wall Street Journal and CNBC that they are not adequately prepared to support the PPP program when it launches on April 3. However, the banks — including JPM — say they plan to support the program once they receive more information from the SBA. JPM actually wound up delivering support on Day One (April 3).
- Private Equity and Venture Capital Debate: SEC chairman Jay Clayton on April 2 said he would promote the idea that small businesses backed by private equity should be eligible for CARE Act loans, The Wall Street Journal reported. It’s unclear if Clayton’s efforts will empower such small businesses. Also, the House Speaker Nancy Pelosi and House Minority Leader Kevin McCarthy, who rarely agree on anything except for the grandeur of California, both want the so-called “affiliation rules” waived to empower PE-owned small businesses for the loans, Axios says.