ICBA updated its frequently asked questions on the federal response to the COVID-19 pandemic with information on the Federal Reserve's new facilities, the latest on SBA's Paycheck Protection Program, tax issues, and more.
The latest updates join numerous FAQs on rebates and stimulus payments, loan modifications and accounting, deposit insurance and exams, compliance, mortgage lending, the Federal Home Loan Banks, operations, agriculture, and more.
The Treasury Department and Small Business Administration this week separately answered key ICBA questions about the PPP. In new updates to the agencies' PPP frequently asked questions, they confirmed the following:
- Lenders may use their own promissory note or an SBA form of promissory note for PPP loans. SBA Standard Loan Note (Form 147) is posted on the SBA website.
- The lender must make the first disbursement of the loan no later than 10 calendar days from the date of loan approval.
- The eight-week period of borrower payroll costs that determines the amount of forgiveness for PPP loans begins on the date the lender makes the first disbursement of the PPP loan to the borrower.
Meanwhile, pages 21-24 of the interim final rule detail the documentation and attestations lenders need to obtain from borrowers. The rule says the SBA will hold harmless any lender that relies on such borrower documents and attestation, as required by the CARES Act.
ICBA continues to ask Treasury and the SBA to provide definitive guidance on whether banks can lend to their directors with eligible small businesses and whether owner draws or distributions count as payroll costs. The association will continue keeping community bankers informed of the latest developments.