Where do you go for funds? We’re working on it!
Here is some information received from McCarthy & Company and their SBA partners that we wanted to share. AGMA will work with McCarthy to provide you with the most up to date information. In the meantime, we encourage you to visit McCarthy’s COVID-19 Resource Page on their website. Stay safe!
SBA Impact: Lenders are awaiting additional details which will be provided as the SBA drafts implementing regulations, which the CARES Act requires to occur within 15 days. Only once these regulations are in place, can lenders begin making loans.
How Are PPP Loans Made?: PPP loans will be made by lenders who are currently approved as 7(a) lenders or who are approved by the SBA and the Treasury Department to become PPP lenders. PPP lenders are delegated authority to make and approve PPP loans, with no additional SBA approval required. PPP lenders are required to consider whether an applicant was in operation on February 15, 2020, and either had employees for whom it paid salaries and payroll taxes or paid independent contractors. Unlike other 7(a) loans, applicants are not required to show that credit is unavailable elsewhere or demonstrate repayment ability. PPP loans are backed by a 100% guaranty from SBA.
Additional Financial Resources:
PAYCHEX Overivew of CARES/FFCRA
NFIB Coronavirus Part III: Financial Resources and Updates for Small Business
A look at the status of the stock market by Wharton Business Group