During the past month, banks have scrambled to accommodate customers—working around the clock to process emergency requests for loan modifications and thousands of applications under the Payroll Protection Program (PPP). They have done this with reduced staff, and while simultaneously overhauling delivery and workflow systems in an attempt to keep customers, employees and their families safe.
SBA Releases Additional Guidance on Paycheck Protection Program; Federal Regulators Publish More Information on PPPLF and Real Estate Appraisals
On the afternoon of April 14, the SBA provided additional guidance regarding the Paycheck Protection Program (“PPP”) in the form of an interim final rule, which supplemented the previously issued interim final rule announcing the implementation of PPP.
In the evening of April 2, the SBA provided much-needed clarity via an Interim Final Rule regarding the Paycheck Protection Program (“PPP”). The rule is effective immediately and can be relied on by lenders in accepting and processing applications as that process begins on April 3.
The Coronavirus Aid, Relief, and Economic Security Act – or the CARES Act – contains several provisions that are designed to aid community banks during these challenging times. This client alert summarizes and provides some analysis of the more important provisions of the Act.