SFNet's COVID-19 Updates

The content on this page is for informational purposes. The information should not be considered as giving legal or business advice. You should not act upon any such information without first seeking qualified professional counsel on your specific matter.

Legislative Issues & Guidance

  • Main Street Lender Portal Includes the Additional Functionality to Support Multi-borrower Loan Structures
    September 21, 2020
    As of Monday, September 21, the Main Street lender portal includes the additional functionality to support multi-borrower loan structures, meaning the program now permits the submission of multi-borrower loans – loans made to multiple co-borrowers.
  • Support Building for More Constructive ABL Integration Into Main Street Lending Programs
    August 3, 2020
    In a letter to Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, Senator Mike Crapo (R-ID) Chairman of the Senate Banking Committee urged law makers to “quickly expand the Main Street Lending Program by setting up an asset-based lending program” writing, “establishing a facility to accommodate asset-based lending could open access to critical resources for several industries that could not otherwise access the MSLP based on earnings or cash flow metrics.
  • California Advocacy Alert
    July 6, 2020
    Last month, SFNet alerted members to CA AB2559, which expands the DBO’s enforcement powers by allowing the DBO to seek ancillary relief in the form of refunds, restitution, disgorgement or damages paid by the lender subject to the California Financing Law (“CFL”) which is found to be violating the CFL. Such ancillary relief is in addition to any fee or citation levied by the DBO and collected for the benefit of the State and is to be paid directly to the aggrieved borrower.
  • The Paycheck Protection Small Business Forgiveness Act
    June 30, 2020
    U.S. Senators Kevin Cramer (R-ND), Bob Menendez (D-NJ), Thom Tillis (R-NC) and Kyrsten Sinema (D-AZ), Senate Banking Committee members, today introduced the “Paycheck Protection Small Business Forgiveness Act,” bipartisan legislation to streamline forgiveness of Paycheck Protection Program (PPP) loans for small businesses.
  • SBA and Treasury Announce Enhanced Transparency Regarding the Paycheck Protection Program
    June 22, 2020
    The U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the Paycheck Protection Program (PPP). This agreement will ensure that the interests of both transparency and protections for small businesses are served.
  • Federal Reserve’s Main Street Lending Program Opens for Lender Registration
    June 15, 2020
    The Federal Reserve’s Main Street Lending Program is now open for lender registration. Lenders can find the necessary registration documents on the program site and are encouraged to begin making Main Street program loans immediately.
  • Main Street Lending Program Forms and Agreements - Federal Reserve Bank of Boston
    June 11, 2020
    The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
  • Highlight of Changes Made to Main Street Lending Program
    June 9, 2020
    Clayton Stallbaumer and Staci Rosche of McGuireWoods summarized the changes to the MSLP, which were announced on Monday.
  • Federal Reserve Board Expands its Main Street Lending Program to Allow More Small and Medium-sized Businesses to be Able to Receive Support
    June 8, 2020
    The Federal Reserve Board on Monday expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The Board lowered the minimum loan amount, raised the maximum loan limit, adjusted the principal repayment schedule to begin after two years, and extended the term to five years, providing borrowers with greater flexibility in repaying the loans. The Board expects the Main Street program to be open for lender registration soon and to be actively buying loans shortly afterwards.
  • Payroll Protection Program (PPP) Loan Update
    June 8, 2020
    This weekend, the SBA released its latest Payroll Protection Program (PPP) loan update. Please see the attached report.
  • Joint Statement by SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin Regarding Enactment of the Paycheck Protection Program Flexibility Act
    June 8, 2020
    SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today following the enactment of the Paycheck Protection Program (PPP) Flexibility Act: “We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program.
  • Bill Easing PPP Limits Signed by President
    June 5, 2020
    President Donald Trump on Friday signed into law legislation that makes a number of changes to the Payroll Protection Program.
  • Main Street Lending Program Updates as of May 28
    May 28, 2020
    The Federal Reserve Bank of Boston today released additional information for potential lenders and potential borrowers, including a form loan participation agreement, lender certifications and covenants, borrower certifications and covenants, updated Frequently Asked Questions, and other legal documents.
  • Rubio-Cardin-Collins-Shaheen: Paycheck Protection Program Extension Act
    May 27, 2020
    The Paycheck Protection Program (PPP) is a critical lifeline for America’s small employers and their employees, who are struggling with the consequences of economic shutdowns aimed at fighting the spread of COVID-19. Since its launch in early April, the program has provided loans totaling more than $510 billion to approximately 4.3 million small employers across the country. The overwhelming majority of borrowers are very small – according to the latest data, nearly two-thirds of all PPP loans are for $50,000 or less, and the average size of a PPP loan is just $118,000, suggesting an average employer size of about 10 employees.
  • Paycheck Protection Program (PPP) Policy Update
    May 26, 2020
    SBA & Treasury have recently released additional guidance: Interim Final Rule on Loan Forgiveness (Released May 22, 2020) and Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities (Released May 22, 2020).
  • Mnuchin and Powell Provide the First Public Update on the Coronavirus Aid, Relief and Economic Security Act
    May 19, 2020
    Yesterday, Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell provided the first public update on the Coronavirus Aid, Relief and Economic Security Act to the Senate Banking Committee.
  • House Democrats Propose the Heroes Act
    May 14, 2020
    House Democrats unveiled a massive $3-trillion virus-relief bill Tuesday, combining aid to state and local governments with direct cash payments, expanded unemployment insurance and food stamp spending as well as funds for voting by mail and the U.S. Postal Service. A vote is likely on Friday.
  • SFNet Submits Request for Further Amendments to MSLP
    May 12, 2020
    After careful review, the Advocacy Committee of SFNet determined that we should provide additional comments to the Fed and Treasury in an effort to make the Main Street Loan Programs better suited to ABL lenders.
  • Paycheck Protection Program Frequently Asked Questions (FAQs) as of May 19
    May 6, 2020
    The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.
  • PPPLF Update and Summary
    May 5, 2020
    On April 30, 2020, the Federal Reserve announced that it is expanding eligibility to participate in the Federal Reserve’s Paycheck Protection Program Liquidity Facility (the “PPPLF”) to all lenders eligible to originate Paycheck Protection Program loans.[1] The PPPLF permits eligible PPP lenders to pledge PPP loan notes to the Federal Reserve in exchange for a low interest, non-recourse loan from the Federal Reserve in the amount of the pledged PPP loan note.

Useful Interpretations

  • Main Street Lender Portal Includes the Additional Functionality to Support Multi-borrower Loan Structures
    September 21, 2020
    As of Monday, September 21, the Main Street lender portal includes the additional functionality to support multi-borrower loan structures, meaning the program now permits the submission of multi-borrower loans – loans made to multiple co-borrowers.
  • Support Building for More Constructive ABL Integration Into Main Street Lending Programs
    August 3, 2020
    In a letter to Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell, Senator Mike Crapo (R-ID) Chairman of the Senate Banking Committee urged law makers to “quickly expand the Main Street Lending Program by setting up an asset-based lending program” writing, “establishing a facility to accommodate asset-based lending could open access to critical resources for several industries that could not otherwise access the MSLP based on earnings or cash flow metrics.
  • California Advocacy Alert
    July 6, 2020
    Last month, SFNet alerted members to CA AB2559, which expands the DBO’s enforcement powers by allowing the DBO to seek ancillary relief in the form of refunds, restitution, disgorgement or damages paid by the lender subject to the California Financing Law (“CFL”) which is found to be violating the CFL. Such ancillary relief is in addition to any fee or citation levied by the DBO and collected for the benefit of the State and is to be paid directly to the aggrieved borrower.
  • The Paycheck Protection Small Business Forgiveness Act
    June 30, 2020
    U.S. Senators Kevin Cramer (R-ND), Bob Menendez (D-NJ), Thom Tillis (R-NC) and Kyrsten Sinema (D-AZ), Senate Banking Committee members, today introduced the “Paycheck Protection Small Business Forgiveness Act,” bipartisan legislation to streamline forgiveness of Paycheck Protection Program (PPP) loans for small businesses.
  • SBA and Treasury Announce Enhanced Transparency Regarding the Paycheck Protection Program
    June 22, 2020
    The U.S. Small Business Administration (SBA) and the U.S. Department of the Treasury have agreed with the bipartisan leaders of the U.S. Senate Small Business Committee to make public additional data regarding the Paycheck Protection Program (PPP). This agreement will ensure that the interests of both transparency and protections for small businesses are served.
  • Federal Reserve’s Main Street Lending Program Opens for Lender Registration
    June 15, 2020
    The Federal Reserve’s Main Street Lending Program is now open for lender registration. Lenders can find the necessary registration documents on the program site and are encouraged to begin making Main Street program loans immediately.
  • Main Street Lending Program Forms and Agreements - Federal Reserve Bank of Boston
    June 11, 2020
    The Federal Reserve has announced that it is establishing a Main Street Lending Program (Program) to support lending to small and medium-sized businesses that were in sound financial condition before the onset of the COVID-19 pandemic.
  • Highlight of Changes Made to Main Street Lending Program
    June 9, 2020
    Clayton Stallbaumer and Staci Rosche of McGuireWoods summarized the changes to the MSLP, which were announced on Monday.
  • Federal Reserve Board Expands its Main Street Lending Program to Allow More Small and Medium-sized Businesses to be Able to Receive Support
    June 8, 2020
    The Federal Reserve Board on Monday expanded its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support. The Board lowered the minimum loan amount, raised the maximum loan limit, adjusted the principal repayment schedule to begin after two years, and extended the term to five years, providing borrowers with greater flexibility in repaying the loans. The Board expects the Main Street program to be open for lender registration soon and to be actively buying loans shortly afterwards.
  • Payroll Protection Program (PPP) Loan Update
    June 8, 2020
    This weekend, the SBA released its latest Payroll Protection Program (PPP) loan update. Please see the attached report.
  • Joint Statement by SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin Regarding Enactment of the Paycheck Protection Program Flexibility Act
    June 8, 2020
    SBA Administrator Jovita Carranza and U.S. Treasury Secretary Steven T. Mnuchin issued the following statement today following the enactment of the Paycheck Protection Program (PPP) Flexibility Act: “We want to thank President Trump for his leadership and commend Leader McConnell, Leader Schumer, Speaker Pelosi, and Leader McCarthy for working on a bipartisan basis to pass this legislation for small businesses participating in the Paycheck Protection Program.
  • Bill Easing PPP Limits Signed by President
    June 5, 2020
    President Donald Trump on Friday signed into law legislation that makes a number of changes to the Payroll Protection Program.
  • Main Street Lending Program Updates as of May 28
    May 28, 2020
    The Federal Reserve Bank of Boston today released additional information for potential lenders and potential borrowers, including a form loan participation agreement, lender certifications and covenants, borrower certifications and covenants, updated Frequently Asked Questions, and other legal documents.
  • Rubio-Cardin-Collins-Shaheen: Paycheck Protection Program Extension Act
    May 27, 2020
    The Paycheck Protection Program (PPP) is a critical lifeline for America’s small employers and their employees, who are struggling with the consequences of economic shutdowns aimed at fighting the spread of COVID-19. Since its launch in early April, the program has provided loans totaling more than $510 billion to approximately 4.3 million small employers across the country. The overwhelming majority of borrowers are very small – according to the latest data, nearly two-thirds of all PPP loans are for $50,000 or less, and the average size of a PPP loan is just $118,000, suggesting an average employer size of about 10 employees.
  • Paycheck Protection Program (PPP) Policy Update
    May 26, 2020
    SBA & Treasury have recently released additional guidance: Interim Final Rule on Loan Forgiveness (Released May 22, 2020) and Interim Final Rule on Loan Review Procedures and Related Borrower Responsibilities (Released May 22, 2020).
  • Paycheck Protection Program Frequently Asked Questions (FAQs) as of May 19
    May 6, 2020
    The Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.
  • PPPLF Update and Summary
    May 5, 2020
    On April 30, 2020, the Federal Reserve announced that it is expanding eligibility to participate in the Federal Reserve’s Paycheck Protection Program Liquidity Facility (the “PPPLF”) to all lenders eligible to originate Paycheck Protection Program loans.[1] The PPPLF permits eligible PPP lenders to pledge PPP loan notes to the Federal Reserve in exchange for a low interest, non-recourse loan from the Federal Reserve in the amount of the pledged PPP loan note.
  • Federal Reserve Board Announces it is Expanding the Scope and Eligibility for the Main Street Lending Program
    April 30, 2020
    The Federal Reserve Board on Thursday announced it is expanding the scope and eligibility for the Main Street Lending Program. As part of its broad effort to support the economy, the Federal Reserve developed the Main Street Lending Program to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic.
  • SBA Sets Window From 4 p.m. Through Midnight Tonight to Accept PPP Applications From Borrowers of Small Lenders Only
    April 29, 2020
    To ensure access to the PPP loan program for the smallest lenders and their small business customers, starting at 4 p.m. today EDT through 11:59 p.m. EDT, SBA systems will only accept loans from lending institutions with asset sizes less than $1 billion dollars.
  • PPP Bill Extends $310B in Additional Capital…Fails to Incorporate Provisions for Lender Eligibility as Borrowers
    April 21, 2020
    The agreed-upon provisions of the highly anticipated expansion of the popular Paycheck Protection Program were released this afternoon and will be voted on as soon as today in the Senate before moving on to the House later this week. The president has indicated he would sign the bill. The bill would extend an additional $310B in funding under the program, but falls short of making certain financial services firms including community banks and secured lenders eligible to borrow under the program – a move that SFNet has vigorously petitioned for. The detailed bill can be found here. SFNet will continue to advocate for these provisions as amendments to the measure and encourages its members to do the same.

SFNet Messages

  • SFNet CEO Reiterates Call for Eligibility of Secured Lenders as Borrowers Under PPP
    June 11, 2020
    In response to the newly passed Paycheck Protection Program Flexibility Act, SFNet issued a letter to Treasury Secretary Mnuchin, SBA Administrator Carranza and Members of Congress reiterating its calls to make secured lenders and factors eligible as borrowers under the Paycheck Protection Program Interim Final Rule, noting that these institutions "who are a critical conduit of capital flows for our economy are now facing material economic hardship, not only from reduced economic activity, but by the displacement of revenue streams due to the success of PPP!"
  • Update on SFNet's Advocacy Efforts and Crucial Conversation Webinar Series from CEO Rich Gumbrecht
    May 18, 2020
    SFNet’s vision of being an essential community for those who provide such solutions has never felt more relevant or rewarding. On the relief effort front, our Advocacy Committee has been communicating with legislators and meeting directly with Treasury and Fed officials to amend and refine the Main Street Lending Programs.
  • Bipartisan Group of 28 Members of Congress Call for Lender Eligibility as Borrowers Under PPP in Support of SFNet Position
    April 24, 2020
    The letter, spearheaded by Reps. Ted Budd (R-NC) and Blaine Luetkemeyer (R-MO), argues that, “While the PPP was statutorily “housed” in section 7(a) of the Small Business Act so that it could use 7(a) Program loan delivery infrastructure, eligibility for the PPP, a new and separate program, was intended to extend to “any business concern” that meets the applicable CARES Act employee thresholds. The Small Business Administration (“SBA”) unduly narrowed the intended broad statutory scope of PPP eligibility when it by rule rendered ineligible for PPP any business ineligible to borrow under the 7(a) Program, which includes lending and financing companies.” Click here to view the letter.

Legislative Resources

Find Your Representative: Have your voice heard on how COVID-19 has effected your business and contact them about current legislation pertinent to the industry.

 

Health & Safety Resources

Centers for Disease Control and Prevention: CDC’s resource page includes what you should know about the virus, situation updates, and information for travelers, businesses, and others.

World Health Organization: Key Planning Recommendations for Mass Gatherings in the Context of the Current COVID-19 Outbreak. This guide provides recommendations for risk assessment, connecting with local authorities in the event location, and specific action plans for COVID-19 disease, among other topics.

 

Travel & Events Resources

U.S. Travel Association: Emergency Preparedness and Response: Coronavirus (COVID-19). This toolkit includes guidance for travelers, a guide for communicating healthy travel practices, and other resources.

 

Meetings Mean Business Coalition: MMB's toolkit of coronavirus preparedness and response resources is tailored specifically for meeting and event professionals. It includes talking points, templates, and "fast facts" graphics that can be shared in social media.

 

U.S. Department of State Bureau of Consular Affairs:  This COVID-19 emergency notification includes information on travel advisories, safe travel tips, and emergency contact information for citizens in China.

 

Economic Resources

Coronavirus Aid, Relief, and Economic Security (CARES) : CARES is expected to infuse approximately $2.2 trillion into the U.S. economy. The Act addresses a multitude of ways in which the federal government seeks to support businesses impacted by the pandemic and employees affected by COVID-19.

 

U.S. Chamber of Commerce: The Chamber’s “Understanding the Coronavirus” webinar, recorded on January 27 in partnership with CDC, discusses the impact of the virus on the private sector and what businesses should consider as they respond. 

 

Other Resources

American Factoring Association Protests AICPA Proposal: The American Factoring Association ("AFA") has written Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell in opposition to a proposal to create a federal program to purchase accounts receivables in the private sector. The AICPA, a CPA trade association, recently proposed the creation of such a program.

 

ELFA Letter to Secretary Mnuchin: On behalf of the nearly $1 trillion equipment leasing and finance industry, I am writing to submit comments regarding the recently issued interim final rule regarding the Paycheck Protection Program (Docket Number: SBA-2020-0015).

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