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PPP update: SBA, Treasury announce transparency efforts, latest data, more
The Small Business Administration (SBA) and Treasury Department last Friday announced an agreement to enhance transparency regarding the paycheck protection program (PPP) by releasing additional data, including business name and type, demographic data, number of jobs supported, and more, for all PPP loans above $150,000.
In the announcement, the SBA explained that the data will be disclosed in categories based on loan amount, and will account for nearly 75 percent of the loan dollars that have been approved. For loans below $150,000, the SBA will aggregate the data by zip code, industry, business type and various demographic categories, and will publicly release those totals as well.
“We are striking the appropriate balance of providing public transparency, while protecting the payroll and personal income information of small businesses, sole proprietors, and independent contractors,” said Treasury Secretary Steven Mnuchin.
NAFCU has continuously advocated for PPP loans under $150,000 be granted automatic forgiveness to reduce burdens on borrowers and lenders.
Of note, more than 750 credit unions with assets of less than $1 billion have approved $2.9 billion in loans, and the most recent PPP loan data demonstrates their commitment to reaching the smallest businesses in need. The deadline to issue new PPP loans is June 30; as of June 19, $128 billion of program funding remains.
In addition, the SBA released a procedural notice regarding the use of PPP loan proceeds to refinance an economic injury disaster loan (EIDL), as well as information for PPP lenders the procedure for remitting any PPP loan funds designated for the refinance of an EIDL to the SBA.
The notice states:
- an EIDL may not be refinanced with a PPP loan when the borrower received the EIDL before Jan. 31, 2020 or after April 3, 2020;
- an EIDL is not required to be refinanced with a PPP loan when the borrower received funds from an EIDL from Jan. 31, 2020 through April 3, 2020 and used the funds for purposes other than payroll costs; and
- a PPP loan must be used to refinance the full amount of an EIDL when the borrower received funds from the EIDL loan from Jan. 31, 2020 through April 3, 2020 and used the EIDL funds to pay payroll costs.
Access NAFCU's PPP FAQs here; more information is also available on the SBA's and Treasury's websites.