Bank presidents and CEOs: Gov. Polis wants to talk to you today
Bank Presidents/CEOs (or designees): 

Governor Polis has asked to speak with bank Presidents/CEOs or a designee this afternoon at 5:30 p.m. 

CBA is not certain of the exact content or message but we believe that he wants to thank banks for the PPP job to date and encourage banks to continue to serve small business customers. 

There may or may not be other content.

Attendees: Colorado bank CEOs/presidents/designees

Phone number: 720-513-7956, no pin

When: Fri Apr 24, 2020 5:30 p.m. – 6 p.m. Mountain Time - Denver
EIDL: By the numbers in Colorado
The SBA released the results of Economic Injury Disaster Loans (EIDLs) to date on 4/20. It is important to note that nationally EIDLs, which are issued and provided directly by the SBA, are only a small fraction of PPP provided loans to date ($8,9B versus $342B) across the US.  

EIDLs allow for advances which are effectively grants of up to $10,0000 per applicant and the EIDL loan component can be up to $2M.  Round one of the EIDL loans program had $10B available from the CARES Act. The SBA has issued 5.3B in loans and $3.3B in advances (grants) for a total to date of $8.9B across the U.S.  I understand Congress is looking to refill the EIDL capacity with the bill currently in Congress before the House.  

A small business can participate in both EIDL and PPP as long as they spend proceeds from each on different things.

1) EIDL Loans: Colorado businesses received 672 Loans totaling $139,163,100 which is an average of $207,087.95/loan. That represents 2.5% of the nationwide total number of loans and dollars but only covered 0.5% of CO Small Businesses with <500 Employees and .01% of total small businesses including businesses without any employees (sole proprietors) so the reach of the loan program was limited and small compared to PPP which covered almost 42,000 Colorado Small Business.

2) EIDL Advances: Colorado businesses received 15,592 Advances totaling $68,680,000 which is an average of $4,405/advance. That represents 2.1% of the nationwide total of advances and dollars and 11.4% of the number of CO Small Businesses with <500 Employees but only 2.4% of all small businesses so this smaller grant dollar amount per business had a much wider reach than the loan component.

3)Colorado has 1.7% of the US population and 2% of US small business employees and payrolls so we did get about.4% more than our expected share of EIDL loan dollars and roughly our expected share of EIDL grant dollars.
In updates to its FAQ yesterday, the SBA emphasized that companies seeking PPP funding must provide a good-faith certification of their economic need. SBA noted that “it is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, for the basis of its certification.”
CBA is closely monitoring the status of SBA's acceptance of the newly approved second round of PPP loans. As soon as we have more information, we will get it to you.
How is COVID-19 affecting the housing market?

Please join us as John Covert, director of the Colorado and New Mexico region of MetroStudy presents on the pandemic’s continued impact on the residential construction market and industry changes.
Topics to include:

  • ​How has the home building industry fared so far in April? 

  • What can we learn from the March/April housing stats and existing home sales data?

  • What are the latest trends from the multifamily market?

Price : $50 members $75 for non members
When : Thursday, April 30 10 a.m.
New SBA Rule Clarifies PPP Borrower Eligibility

The Small Business Administration today issued an  interim final rule  clarifying several issues around borrower eligibility for the Paycheck Protection Program as well as incorporating several previously issued FAQs.

Under the rule, hedge funds and private equity firms are ineligible for PPP loans, and SBA affiliation rules apply to companies held in private equity portfolios, SBA said. SBA added that PE portfolio firms should “carefully review” the PPP borrower certification on their economic needs.

The rule also clarified that a business with an employee stock ownership plan does not trigger the affiliation rules and that firms in bankruptcy proceedings at any point before funds are disbursed are ineligible for the PPP.

The rule, which took effect today, also formalized previous FAQ guidance on  promissory notes SBA authorization forms  and a  safe harbor for PPP borrowers who had access to capital market funding provided they return funds by May 7.
Colorado Bankers Association
303-825-1575 | 303-825-1585