Guidance for Lenders under the SBA-Guaranteed Paycheck Protection Program
Through the CARES Act, Congress has appropriated $349 billion for forgivable loans under the Paycheck Protection Program (“PPP”). These “loans” are effectively grants to employers, including sole proprietors, independent contractors and non-profits that have 500 or fewer employees together with their affiliates. Treasury and SBA guidance indicates that lenders may begin accepting applications under the program beginning April 3, 2020. Please join us for a discussion and Q&A session with Renée Bender on these loans and the related provisions of the CARES Act. Topics we will explore include:
- Is the program really ready to go?
- What are the risks and benefits for lenders that make PPP loans?
- What is the process for making a PPP loan and what documents are required?
- Do lenders use an SBA-created promissory note or their own note form?
- Why does SBA guidance state that interest rates will be 0.5% rather than 4%?
- What verification steps must lenders implement in processing applications and requests for forgiveness?
- How can discrepancies between the CARES Act and SBA guidance and application materials be reconciled or addressed?