As we move into full week #3 of the stay at home directive, we hope that you are your organization are remaining well and healthy. We have a few new updates to share today, including some issues with the first day of PPP lending that were addressed by Senator Rubio. Also, two more banks that have asked to be listed on our PPP lending list. For other financial institutions that have not reached out yet and would like to be listed, please send an email to firstname.lastname@example.org and include Bank Name, Representative to contact, and a phone number.
Senator Marco Rubio, chief co-sponsor of the CARES Act, posted a thirteen-part thread outlining many of the impediments seen on day one of the PPP program and how they can/will be fixed. See Senator Rubio’s comments below:
- Day one saw complications you would expect with unprecedented $349 BILLION emergency plan passed just 7 days ago
- Despite this as of 6:06 pm Friday 13,669 Small Business owners received PPP loans valued at more than $4.3B. However, a number of outstanding issues to address
- On Friday we had various & extensive conversations with SBA & US Treasury about the issues that emerged on day one of PPP loans. I expect that early next week they will be releasing additional guidance that should provide clarity & help resolve many of these issues
- First issue is that for now most banks only provide #PPP loans to existing clients because the SBA interim final rule only exempts money- laundering requirements for existing customers. But that makes it difficult for Small Business if they are denied by their bank.
- The good news is multiple FinTechs including PayPal & other online lenders are ready, able & willing to process #PPP loans for them & anyone else. But they need the US Treasury to release applications for nonbank lenders to become certified. I expect that very early next week.
- Second issue is that because of requirement in SBA interim final rule that lenders hold loans for 7 weeks before they can be purchased, we will need a purchase mechanism through US Treasury or federal reserve ASAP in order for community banks & FinTech to make #PPP loans
- Third issue is that in order for lenders to confidently participate they need further clarity on SBA affiliation rules for Small Business & 501(c)(3) – Inconsistency on general eligibility requirements for #PPP loans I expect that very early next week as well
- Fourth issue is that the SBA interim final rule has contradicting guidance determining whether Small Business owners should include independent contractors 1099’s in payroll cost calculation.
- Fifth issue is that In calculating avg monthly payroll to determine #PPP loans amount we need SBA to make clear our intent when writing the bill that gross payroll would be applied to calculation to ensure federal tax withholding & FICA burden isn’t on small business
- Sixth issue is that E-Tran, the SBA internal system for loan applications has been slow due to the volume of applications Friday. SBA has contracted with Amazon Web Services to ensure E-Tran system issues are resolved moving forward.
- Seventh issue is that some community banks have reported issues with accessing the AWS portal which SBA uses to provide access to non-SBA lenders. We have discussed this also with SBA which assured us they are addressing this problem.
- Eighth issue is money. Based on the demand we saw on Day One it is clear we will need more money for #PPP by late May. Our rough estimate is that if 2/3 of the lenders that will participate in #PPP loans aren’t up & running yet, the $349 billion will run out around 6 June.
- When you launch something this unprecedented & far reaching, just 7 days after it became law, you are going to have some problems. The GOOD NEWS is every problem we saw on Day One of #PPP loans can be fixed. We will stay on it to make sure it gets better each day forward
Here is the current list of PPP lenders:
Chamber Members Participating in the
Paycheck Protection Program / CARES Act grant/loan
Heartland Bank & Trust
First American Bank
Edward J Pizzo
First Secure Community Bank
Woodforest National Bank
Hometown National Bank
Midland States Bank
Merchants and Manufacturers Bank
*First Midwest Bank will be participating in a number of COVID-19 Client relief programs. Please visit our website at Firstmidwest.com for the latest information or call your First Midwest Bank relationship manager.
Attached to this email and posted on our web page is a comparative document between the SBA EIDL and PPP loans. This is a good tool for those still weighing options and are unsure which covered exactly what.
Check out this from the U.S. Chamber of Commerce if you are still seeking info on leave issues. Here is their newest guide to the paid sick and FMLA programs .
Childcare for Essential Workers
In the wake of COVID-19 closures of child care programs across Illinois, the state is working with local partners to help reopen some settings to ensure care for the children of first responders and other “essential” employees. ReadyNation’s nonprofit network of business executives is striving to share this information, to help those on the front lines of responding to – and helping us all get through – this extraordinary health crisis. We thank local chamber execs for your help in spreading the word, as well, and ask that you keep it up.
Essential workers have two ways to find child care options:
- Call 888-228-1146, or
- Check https://emergencycare.inccrraa.org
Hundreds of existing child care providers already have applied to reopen under new, “emergency” guidelines. Other interested providers are encouraged to explore their potential for serving essential workers’ families, too. Further information for parents and providers, alike, can be found at https://www2.illinois.gov/sites/OECD/Pages/For-Communities.aspx
Click here for draft slides of a recent presentation and here for a toolkit of child care provider resources. An updated version of the toolkit will be posted to the GOECD website under “Business Resources” in the “Resources for Child Care Providers” section of the webpage.
SBA Webinar in Spanish
Thanks to one of our former interns, Laura Munoz from the University of St. Francis (and a shared note from USF’s Bonnie Covelli), we are able to pass along this opportunity that Laura’s boss, Congressman Greg Stanton (AZ-09), and the Small Business Administration are hosting tomorrow. The webinar is completely in Spanish and it’s for businesses to understand the new federal programs for small business owners and giving step-by-step instructions on how to apply for loans and grants. https://docs.google.com/forms/d/e/1FAIpQLSeVL4DVU2tlXi0E-cfvqXEySVNJBQ6G_q_Zm0chpVUD0x2umw/viewform
Additional SBA Training dates & times
See all events at: sbaillinois.eventbrite.com
Attached is a letter from Senator Jennifer Bertino-Tarrant addressed to small business owners and covers a number of the programs available to all.
Finally, we will be sharing tomorrow information to register for a Webinar on Thursday morning at 10 am in partnership with Kevin Courtois, Executive Director of the U. S. Chamber of Commerce Great Lakes Regional Office. The webinar will mainly cover SBA PPP loans, SBA EIDL loans, paid sick leave, and paid FMLA leave. We hope that you can join us!
Joliet Region Chamber of Commerce & Industry Staff and Board of Directors
Vice President – Government Affairs
Joliet Region Chamber of Commerce & Industry