Last Friday the $348 billion Paycheck Protection Program (PPP) went live. The PPP was created to provide loans to small businesses suffering from the economic impacts of the coronavirus pandemic. The rollout was not without bumps in the road. Demand was strong and the rapid development and implementation kept some banks and lenders from moving quickly. Treasury reported yesterday that they have processed more than 381,000 applications for a total of around $100 billion. Most of this amount has not yet been dispersed, but rather it is the value of loans approved for lenders to process and disperse.
Treasury has continued to refine and update administrative rules for the PPP. For the latest information, please check here. The Treasury Department has also released a new FAQ document to further help small businesses apply for PPP loans, which you can access here.
Due to the ongoing high demand and concerns that currently allocated funding will be insufficient, there is ongoing discussion among House and Senate leadership about how increase funds for the PPP. Hoped for action did not happen this week, but there are active efforts looking to come to agreement. Democrats are looking to double the $250 billion put on the table by Republicans, putting more money for states and local communities. We will continue to monitor and report on progress.
The Federal Reserve also announced a several measures to support the economy on Wednesday, April 8, including important support for financial institutions administering PPP loans. More information about the Fed’s actions may be accessed here.