Looking for PPP updates from the SBA? Check Twitter

SBA has not yet produced a written statement to explain the PPP system procedures, but an SBA spokesperson was quoted in WSJ, Politico and Bloomberg about 1:30 p.m. today, April 27, that this pacing is how SBA intended it to operate all along – although SBA had not informed the industry of this throttled pace.

Much of the information being released is coming via social media channels, particularly Twitter.
Afternoon update: PPP problems everywhere

Banks of all sizes are having huge access problems and that has created intense frustrations and anger among banks attempting to process the loans, but the focus needs to be on the small businesses that are not being well served. CBA is upset over the access and communications problems.

"Circumstances vary by bank but banks of all sizes have loans ready to submit, and today has been very disappointing – especially to the small businesses themselves – because banks nationwide are experiencing major problems with the SBA system," said CBA chief executive officer Don Childears.

It appears banks of all sizes are being booted off of the SBA system after a few loans are entered. We and other bankers associations are hearing this from large, medium and small banks. There have been reports of banks being booted off the SBA system after 1-20 loans, even before one loan is entered. 

Banking associations throughout the U.S. had urged advance disclosure of procedures. Over the weekend, SBA shrunk the batch minimum from 15,000 to 5,000 loans but then we are told today that then those are hand processed loan by loan at SBA.

Related to this, bankers associations have requested an audit on PPP loan makeup at the end of each day so we can know patterns in time to address them. 

Additionally, lots of guidance and FAQs were issued over the weekend on various topics ranging from maximum loan calculation to servicing of loans sold in the secondary market to CRA credit for PPP loans needing CRA documentation. 

It also has been reported that some banks are still awaiting fees on loans closed weeks ago. And we are working with other associations to address the resulting higher FDIC premiums that will result from PPP loans being classified as C&I and the FDIC risk-calculator classifying them as high risk despite the fact they have a 100% guarantee.

One $50B bank in another state said it has 9,000 loans to enter, 100 people entering, and they've gotten 83 entered today. 

SBA said today that “SBA notified lenders yesterday that pacing of applications into the E-Tran system would occur. The pacing mechanism prevents any one lender from submitting thousands of loans an hour into the E-Tran system. If a lender goes above the pacing limit they will get timed out.”  
Via Twitter:

SBA: "As of 3:30 pm EDT today, SBA has processed more than 100,000 PPP loans by more than 4,000 lenders."

"The SBA did not attach a dollar amount to the volume of loans processed today."
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
*The cost is to pay for video conferencing fees and staff time 
When : Thursday, April 30 10 a.m.
COVID-19: HR considerations with reopening offices
 
Please join us as we discuss HR related issues as offices open up in Colorado. We will take a deep dive into how to get your bank and office ready. Topics to include:
 
·   Banking response
 
·   Employers States Council; business considerations 
 
·   How to screen, what businesses should do to keep everyone healthy 
 
Price : Members $50 Non members $75
*The cost is to pay for video conferencing fees and staff time 
 When: Wednesday, April 29 10 a.m 
Colorado Bankers Association
303-825-1575 | 303-825-1585