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

  • 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.
  • 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.
  • CARES Act Amendment Summary
    April 23, 2020
    On Tuesday, April 21, the Senate passed an amendment to the CARES Act that, among other things, would amend certain provisions of the Paycheck Protection Program (“PPP”), economic injury disaster loans, and emergency grants. The amendment is expected to pass the House later this week and the president has indicated he would sign it. In some ways, the amendment is as notable for some of the things it did not do – it did not create eligibility for financial services firms including community banks and secured lenders to borrow PPP loans, and it did not include rumored restrictions on larger borrower’s access to PPP – as it is for what it did do (increase funding and create a set-aside of PPP guarantees for PPP loans made by certain small and community development lenders).
  • 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 Responds to Main Street Lending Program Guidance
    April 15, 2020
    In a letter to Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell, SFNet CEO Rich Gumbrecht provided recommendations to help facilitate the objectives of the newly introduced Main Street Expanded and New Loan Facilities as set out by the Federal Reserve.

Useful Interpretations

  • 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.
  • CARES Act Amendment Summary
    April 23, 2020
    On Tuesday, April 21, the Senate passed an amendment to the CARES Act that, among other things, would amend certain provisions of the Paycheck Protection Program (“PPP”), economic injury disaster loans, and emergency grants. The amendment is expected to pass the House later this week and the president has indicated he would sign it. In some ways, the amendment is as notable for some of the things it did not do – it did not create eligibility for financial services firms including community banks and secured lenders to borrow PPP loans, and it did not include rumored restrictions on larger borrower’s access to PPP – as it is for what it did do (increase funding and create a set-aside of PPP guarantees for PPP loans made by certain small and community development lenders).
  • 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.
  • New UK Insolvency Legislation and its Potential Impact on the Asset-Based Lending Industry: The New Moratorium
    April 16, 2020
    Richard Hawkins, CEO of Atlantic RMS, considers the implications of the UK government's latest announcement and its impact on asset-based lending to UK business.

SFNet Messages

  • 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).

Hot topics ▪ Vital data ▪ Important dialogue

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