Treasury

Top executives from large businesses around the country, led by former Starbucks CEO Howard Schultz, have written to Congress, calling on legislation to extend and create lending programs for small businesses.

The executives suggest the programs operate through the banks and lenders who have participated in the Paycheck Protection Program.

Read on for details from the letter to Congress.

Will they, or won’t they?

The Paycheck Protection Program (PPP) is scheduled to stop taking applications again Aug. 6. As of the end of business July 30, the PPP still had close to $130 billion in funding available.

In the Senate version of the latest round of federal stimulus, PPP would get an additional $190 billion in funding, and businesses would be able to access a second PPP loan if they already had received one earlier – with conditions on which businesses could access a second loan.

But talks between Democrats and Republicans have stalled. Will they pass legislation before PPP expires again?

As Congress pressed forward on work on a new stimulus package for the country, there appeared progress on adding more funding to the Paycheck Protection Program (PPP), the potential for businesses to get a second PPP loan, and discussions over blanket forgiveness for small borrowers.

Treasury Secretary Steven Mnuchin on Thursday told CNBC that there was bipartisan support for PPP.

Read on for all the latest.

A new report from the Government Accountability Office (GAO) on federal programs to combat the coronavirus crisis specifically calls out the need for improved fraud detection and prevention efforts in the Paycheck Protection Program.

The report states that the risks to the program extend beyond the loans of $2 million or more which the Treasury Department and Small Business Administration have said will be subject to stricter reviews.

Read on for more details from the GAO’s recommendations.

As the Paycheck Protection Program reached its final day, the Senate decided it wasn’t done with the program quite yet.

With about $134 billion still left in its coffers, the Senate on June 30 unanimously approved an extension to the program through Aug. 8. The House approved the measure the next night.

In addition, new legislation introduced in the Senate would reduce the forgiveness process for borrowers with loans of less than $150,000 to a one-page attestation. Read on for all the latest.

After taking criticism for telling a Senate committee that the Treasury Department and Small Business Administration (SBA) would not be releasing details on the names and loan amounts for participants in the Paycheck Protection Program (PPP), Treasury Secretary Steven Mnuchin announced a change in course.

The change will provide detailed information on companies who took out loans of more than $150,000, which account for 15 percent of the PPP loans issued.

Read on for more details, along with details of SBA’s new tool to match borrowers with small community lenders.

Senate and House Democrats introduced companion legislation which would create an opportunity for small businesses which already have received a Paycheck Protection Program loan to be able to receive a second loan.

The legislation includes restrictions primarily based on a demonstrable loss of revenue during the pandemic, and would extend the period in which companies could apply for a loan through at least the end of the year.

Read on for details from the new legislation.

The Treasury Department and Small Business Administration (SBA) took two big steps to help provide relief to Paycheck Protection Program borrowers after the passage of the recent flexibility act.

First, the agencies issued guidance which allows the eligible payroll total for forgiveness to be a full 24-week period, and then they published a new EZ application form to streamline the process for most borrowers.

Read on for details of the latest relief measures.

Following up on conversations with the Senate Small Business and Entrepreneurship Committee, last week, the Treasury Department and Small Business Administration issued new guidance around the availability of Paycheck Protection Program (PPP) loans for those with felony convictions.

In addition, after Treasury Secretary Steven Mnuchin told the Senate committee that the agency considered PPP borrower information confidential and proprietary, Democrats on the Select Subcommittee on the Coronavirus Crisis sent letters to the agencies and large banks, requesting information on the loans issued.

Read on for more details from the program.

Small Business Administration (SBA) Administrator Jovita Carranza wrote to lenders June 15 asking them to do more to get Paycheck Protection Program loans to smaller businesses and underserved communities.

Carranza’s letter said the SBA recognized that Community Development Financial Institutions, minority depository institutions, certified development companies and Farm Credit System lenders are leading the way to serve individual entrepreneurs and small businesses in underserved communities.

Read on for details from her letter to lenders.