SBA releases promissory note for PPP loans
SBA also releases gateway to facilitate loans
The Small Business Administration last night released a long-awaited promissory note form for use with Paycheck Protection Program loans. Bankers, CBA and others have strongly advocated for SBA to provide a standard note.
Meanwhile, SBA and the Treasury Department on Monday night updated their frequently asked questions on the PPP to address several questions raised banks.

Bankers can bookmark some FAQs , which will be regularly updated as SBA and Treasury address questions.

Among other topics, the newly added answers clarify:
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  • That lenders may rely on borrower certifications as to the applicability of affiliation rules.
  • That lenders do not need to re-verify beneficial ownership information for existing customers. (If participating depository institutions have not yet collected beneficial ownership information on existing customers, they are not required to do so for those customers applying for PPP loans.)
  • How payroll is defined under the CARES Act, including the calculation of non-cash benefits and coverage of paid leave.
  • Methods for determining payroll to calculate maximum loan amounts.
  • That lenders who processed applications based on the April 2 interim final rule may rely on the laws, rules and guidance available at the time.


SBA yesterday launched a new Lender Gateway in partnership with Amazon Web Services to facilitate connection to the E-Tran system.
 
The gateway can be accessed at connect.sba.gov
CBA working on messaging in the press:
Banks are working diligently to help customers access PPP funds
Denver Post

“I can sympathize very much with small businesses,” said Don Childears, CEO of the Colorado Bankers Association. “They can see the life preserver, but they can’t reach it.”

“If you can help that business stay alive, you have minimized your own losses as a lender. It makes sense,” Childears said.

“None of us know how fast this $350 billion could be consumed. The money will not be sufficient for the demand that seems to be out there,” Childears said.

Denver Business Journal

Many Colorado bankers worked through the weekend in order to assist customers with the new new  U.S. Small Business Administration  loans for businesses struggling with the impact of COVID-19. 

Amanda Averch , a spokeswoman with Colorado’s largest banking trade group, the  Colorado Bankers Association , told Denver Business Journal that bankers are trying to get these funds to their clients as quickly as possible. 

“It’s been confusing and challenging for borrowers and bankers alike,” Averch said. “Bankers want customers to succeed. Our customers are our neighbors and friends.” 

New links and resources for banks and borrowers
Banks/ that have capacity to do PPP Loans for businesses that are not existing customers

The Fina n cial Services Committee of the Governor’s Task Force to address COVID-19 economic recovery wants to know banks’ participation in the recently created Paycheck Protection Program. 

While we recognize many banks still have access problems and numerous “compliance” issues are unresolved, the Financial Services Committee would appreciate each bank responding to the four questions below. 

The purpose is to put out a referral list to the small business hot line and web site of the Colorado Office of Economic Development and International Trade (OEDIT). 

Please send your reply to Jeff Kraft, Director of Business Funding and Incentives, Colorado OEDIT, at jeff.kraft@state.co.us .

1)   Are you currently able to complete Paycheck Protection Program loans?                                            Yes or No

2)   If you do not have the capability now, are you attempting to obtain it?                                               Yes or No

3)   Are you willing to serve small businesses that are not now a customer of your bank?                      Yes or No

4)    Are there any other general conditions on what entities you will or will not serve?             
Colorado Bankers Association
303-825-1575 | 303-825-1585