Paycheck Protection Program Update

As you are aware, a key program under The Coronavirus Aid, Relief, and Economic Security (CARES) Act is the Paycheck Protection Program (PPP). Many of our clients have been vigorously preparing preliminary applications this week in anticipation of Friday, April 3, 2020 – the date on which lenders may begin processing loan applications. Much of this preparation was completed with limited guidance from the U.S. Small Business Administration (SBA) or U.S. Treasury.

We are pleased to report that the SBA released an Initial Final Rule on Thursday evening, which brings much needed clarity on a number of elements that were unclear in the CARES Act. This includes details regarding what items may be included in and excluded from the eligible maximum loan calculation. Additionally, this guidance changes previous announcements regarding PPP loan terms and affirms a rate of 1% on loans that are issued.

The RS&F team is currently reviewing this new guidance and will continue working with clients as they work through their PPP loan applications. If you will be applying for a PPP loan through an authorized lender and have not yet prepared information or connected with a bank, we strongly encourage you to act promptly. While the CARES Act authorized up to $349 billion in forgivable loans to small businesses and organizations through the PPP, the needs in our country due to the COVID-19 pandemic are well beyond the resources of this program.

For additional information regarding the Paycheck Protection Program, you may also visit the SBA’s website. Please contact your RS&F Client Advisor for additional details regarding PPP and if you need assistance with your loan application.

We are eager for this program to accelerate and provide much needed support to businesses and nonprofit organizations in our community. Our team is hopeful that it will serve its purpose – supporting great businesses and nonprofits until the crisis dissipates and retaining American jobs.