Ethan Smith Interviewed by CNN
Philadelphia, PA – CNN interviewed Ethan Smith on the Paycheck Protection Program implemented in response to the Covid-19 pandemic. Ethan gave his insight on fraud committed in the PPP program as exemplified by an alleged scammer who was granted at least six Covid-19 bailout loans from the federal government. “There was no way to put ... Read More
Best Practices: Current Guidance on Compliance Checks Error and Hold Codes
On February 10, 2021 SBA issued Procedural Notice 5000-20092 regarding Revised SBA Paycheck Protection Platform Procedures for Addressing Hold Codes on First Draw PPP Loans and Compliance Check Error Messages on First Draw PPP Loans and Second Draw PPP Loans, which updates the previous SBA Procedural Notice 5000-20083, issued January 26, 2021. During the ... Read More
Best Practices: Recent Changes to Section 1112 Payments
The Economic Aid to Hard Hit Small Businesses, Nonprofits and Venues Act (the Economic Aid Act) contained provisions for SBA to cover up to six months of loan payments for certain 7(a) borrowers. When the Economic Aid Act was enacted, it was anticipated that the funds allocated to cover such payments may not be sufficient ... Read More
Best Practices: Determining Maturities of New 7(a) Loans Eligible to Receive Section 1112 Payments
SBA Procedural Notice 5000-20093 (the Notice), effective February 12, 2021, focuses on establishing maturities of new 7(a) loans approved between February 1, 2021 and September 30, 2021 which may be eligible for a 6-month payment subsidy of principal, interest and associated fees, subject to a $9,000 monthly cap and availability of funds. The repayment schedule ... Read More
Best Practices: SBA Releases Updated PPP Lender Processing Fee Payments and 1502 Reporting Process
Due to changes to the PPP loan program contained in the Economic Aid Act, the SBA released SBA Procedural Notice 5000-20091 on February 8, 2021, which updates the SBA Procedural Notice 5000-20036, effective July 13, 2020, concerning the PPP loan reporting process and processing fees. Lenders must still continue to report fully disbursed PPP loans ... Read More
Best Practices: 7(a) Loan Program Reduces Lender Fees and Increases Guaranty Percentages
SBA released Information Notice 5000-20084 on January 27, 2021. In accordance with the Economic Aid Act, the Notice provides for temporary changes to SBA loan programs, including higher guaranty percentages and fee reductions, to assist small businesses. A brief overview of the changes to SBA loan programs and lenders’ responsibilities follow. Guaranty Percentage Increases For ... Read More
