Treasury Secretary Mnuchin says guidance, loan application on track for today
We'll keep you posted
Treasury Secretary Mnuchin reiterated this afternoon that the guidance and a one-page loan application still are on track to be completed today. It is still intended to be online and to require minimal documentation. CBA will provide more detail as soon as we are able. 

SBA was making decisions on implementing this huge program until Friday afternoon when Mnuchin and the Treasury Department were determined to be the ones making implementation decisions for the CARES Act – using SBA as the vehicle to deliver the funds. He and Treasury are now in charge and are driving forward quickly. 

  • The process will be like 7a loans
  • Current 7a lenders will get the first funding, using the SBA’s E-Tran system
  • A non-SBA lender becomes an SBA lender upon SBA approval, not when the application is filed
  • No guidance will be provided today for non SBA lenders and Fintech, but it will come later this week
  • There will be minimum underwriting, particularly for a bank’s existing customers
  • It is unknown how long the $350B will last; the plan is for a 4th bill providing more funding if/when needed
  • If there is a 4th bill for additional funding, that can’t occur until Congress reconvenes April 20
  • AWS (Amazon Web Services) does the SBA data now and is helping create a redundant system to handle the volume
  • SBA made 58,000 loans last year; this year a much larger number is expected
  • Once SBA in WDC knows the program it will inform regional and district offices
  • The program becomes official when published in the Federal Register, which is being monitored
  • Most payments will happen by direct deposit, with checks as backup and processed later – the desire is to handle electronically as much as possible
  • To expedite funding, banks evidently will get a “hold harmless” up front (re data collection) and at the end (re forgiveness)
  • Guesses are that the $350B will last a week or two – ?

The Trump administration promises to get a loan program for small businesses up and running by Friday , aiming to prevent companies from going out of business or laying off workers. Companies with fewer than 500 employees can seek as much as $10 million to pay expenses, including wages and rent, for two months.
The Federal Reserve has launched several lending programs during the past few weeks to keep the US economy afloat amid the coronavirus pandemic, but the central bank is expected to go further. Congress has given the Fed $454 billion and a mandate to provide capital to businesses, states and cities, an activity usually left to elected officials.
Federal Reserve Bank; Economic update in wake of COVID-19
Please join us as Nicholas Sly, Assistant Vice President and Denver Branch Executive of the Federal Reserve Bank of Kansas City, gives a economic update on the U.S. and Colorado economy in the wake of the COVID-19 pandemic.
When Thursday, April 2, 10-11 a.m.
Price : $50 members $75 non-members *CBA charge for webinars is not for profit but to cover licensing fees and staff time
Colorado Bankers Association
303-825-1575 | 303-825-1585