COVID-19 Dai­ly Com­mu­ni­ca­tions

04/24/20

High­lights:

  • The Sen­ate and the House have passed the $320 bil­lion sec­ond round of Pay­check Pro­tec­tion Pro­gram (PPP) stim­u­lus relief dol­lars as of Thurs­day. A Pres­i­den­tial sig­na­ture is expect­ed as ear­ly as today which allow funds to flow back to both the PPP and EIDL small busi­ness loan pro­grams. Thurs­day, which pro­vides gov­ern­ment-guar­an­teed loans to small busi­ness­es.

 

  • The new relief pack­age guar­an­tees that at least $30 bil­lion of the new funds will be des­ig­nat­ed for com­mu­ni­ty banks so that they don’t have to com­pete with larg­er insti­tu­tions. Because lenders now have a back­log of appli­ca­tions, this mon­ey is expect­ed to go quick­ly, too.

 

  • Con­gress also allo­cat­ed $60 bil­lion for the Eco­nom­ic Injury Dis­as­ter Loan pro­gram. The SBA received loan requests worth more than $400 bil­lion through the pro­gram, which had only $10 bil­lion in fund­ing ini­tial­ly.

 

  • Banks are sound­ing the alarm that the upcom­ing fund­ing round for the fed­er­al Pay­check Pro­tec­tion Pro­gram (PPP) is like­ly already tapped. “The major­i­ty if not all of the fund­ing Con­gress is con­sid­er­ing right now is already exhaust­ed,” Nick Simp­son, a spokesman with the Con­sumer Bankers Asso­ci­a­tion told the Asso­ci­at­ed Press (AP) on Thurs­day April 23. Because there is a large back­log of appli­ca­tions from the first fund­ing round, it’s like­ly that few if any new appli­cants will get the for­giv­able loans from the Small Busi­ness Admin­is­tra­tion (SBA). Bankers said there are hun­dreds of thou­sands of pend­ing appli­ca­tions — and with a dai­ly burn rate of $50 bil­lion, the PPP would need about $1 tril­lion to sat­is­fy the demand.
    • About a third of the new fund­ing is being allo­cat­ed for small banks, but even they are backed up with appli­ca­tions. Some have said they did a year’s worth of appli­ca­tions in one week­end.

 

  • JPMor­gan Chase still had to fund $26 bil­lion in loans from hun­dreds of thou­sands of first round cus­tomers.

 

  • The pro­gram was crit­i­cized after it was revealed that big loans were extend­ed to pub­lic com­pa­nies and nation­wide chains worth mil­lions. Har­vard, rat­ed as the world’s wealth­i­est uni­ver­si­ty with a $40 bil­lion endow­ment fund, was approved for an $8 mil­lion loan but decid­ed to turn it down.  Ham­burg­er chain Shake Shack said it is return­ing the $10 mil­lion it received through the pro­gram.

 

  • The SBA has issued new rules it says will make it unlike­ly that pub­licly trad­ed com­pa­nies will receive mon­ey from the next round of coro­n­avirus res­cue fund­ing.

 

It is unlike­ly the addi­tion­al fund­ing makes it until the mid­dle of next week.

 

 

 

 

State and Local:

Cities Offer­ing Emer­gency Busi­ness Relief Pro­grams

 

 

Busi­ness help­ing Busi­ness:

 

The U.S. Cham­ber has launched the Save Small Busi­ness Fund, a pil­lar of the Save Small Busi­ness Ini­tia­tive. The pro­gram pro­vides $5,000 sup­ple­men­tal grants to small employ­ers in eco­nom­i­cal­ly vul­ner­a­ble com­mu­ni­ties.

 

 

NKY Cham­ber Dai­ly: http://www.nkychamber.com/news/covid-19/

 

US Cham­ber of Com­merce:  https://www.uschamber.com/members/small-business