Mnuchin: $22 billion in PPP funds have been processed
Treasury Secretary says broad support exists for more funding
CBA learned a few updates from a live conversation Sunday, April 5, at 9 a.m. with Treasury Secretary Mnuchin and senior SBA executives. Major points are below.
  • Unprecedented response – As of Sunday, April 5, at 8 a.m.
  • While acknowledging it has not been smooth and is not yet in good order, Treasury Secretary Mnuchin takes pride in developing and launching in one week what normally would take government 4-6 months to create
  • 77,544 loans from 1,896 lenders worth ~$22B have been processed
  • SBA is processing ~$1B/hour at that time
  • ~$22B processed in 2½ days is about equal to the total annual SBA loan value in recent years
  • Without quantifying amounts, Treasury/SBA asserted that most of that volume and almost all of the initial volume came from community banks with a couple large banks processing loans late in the initial 24 hours and accounting for “only a portion” of the loans in the first 24 hours
  • If the $350B gets exhausted soon, Mnuchin believes there is broad Congressional support to quickly appropriate more funding and that the President tweeted his support for that on Saturday
  • SBA acknowledged E-Tran access issues:
  • 1,200 banks were on E-Tran as of Sunday morning, April 5 – leaving 4,000 not yet on it
  • Avoided crash of system that they feared they would experience
  • SBA is focused on maintaining security of the system in order to not experience more fraud
  • Much of the delay in accrediting new lenders is due to maintaining that security
  • SBA says SBA Form 3506 applications are getting “quick turn around” and they have a team dedicated exclusively to this
  • In response to specific questions, answers were:
  • While there are questions about closing or servicing loans (which will get answered), please keep originating loans in order to distribute funds
  • The redundant system being build by AWS has not gone on line yet, but they “expect it soon”
  • While banks have been told by primary regulators not to worry about creating leverage ratio problems, Treasury and the Federal Reserve hope to announce a leverage ratio solution within a few days
  • Treasury is working with the Federal Reserve in developing a liquidity facility that they hope to announce this next week
  • Treasury, Federal Reserve and FDIC have been monitoring the need for a TAG program to guaranty deposits, do not yet see the need, and will act when/if they believe appropriate
  • On whether to use an SBA promissory note or the bank’s own, SBA is working now on guidance and will get it out as soon as they can
  • Regarding bank directors ability to participate in PPP, SBA states there are no restrictions regarding use of the director’s own bank or another bank but the bank where he/she is a director might want to emphasize due diligence and documentation
  • Regarding conflicting guidance as to whether to do payroll calculations based on 2019 or the last 12 months, SBA could not provide insight but said they would clarify in future guidance

CBA will continue to provide you the latest information.
A note on funding and liquidity

ABA is hearing anecdotally from members about potential funding and liquidity challenges based on the current economic outlook and the demand for lending under various programs implemented as part of the federal government’s response to COVID-19. In order to assess the current situation and the industry’s expectations, we would appreciate your bank’s participation in the following  anonymous  survey. Results of the survey will help to inform ABA’s advocacy and communication with policy makers about the potential need for additional programs or other actions needed to support the economy’s recovery from the pandemic.


The survey asks both targeted and open questions; we ask that you designate one person at your bank to compile responses and submit the survey, as only one response is needed for each bank.

Please complete the survey as soon as possible, but no later than Friday 4/10. If you have questions, please reach out to the ABA liquidity team at liquidity@aba.com .

Colorado Bankers Association
303-825-1575 | 303-825-1585