PPP loans sent after midnight Tuesday won’t be federally guaranteed
Puerto Rico has had 36,417 loans, totaling over $1.78 billion, guaranteed
SAN JUAN – The Small Business Administration warned Monday that lenders participating in the Paycheck Protection Program, for loans designed to provide a direct incentive for small businesses to keep their workers on the payroll, should already be aware that the deadline to transmit any program loans to the agency and get the federal guarantee is June 30.
“Any lender transmission to the SBA after 11:59:59pm tomorrow night will not receive the federal guarantee. The June 30 deadline was provided to the PPP by the CARES Act under the “covered period” (CARES Act; Public Law 116-137, 3/27/20, Sec 1102),” the agency notified.
The most recent PPP Report, covering the program up until June 27, shows that nationally nearly 4.8 million PPP loans totaling close to $518.86 billion had been disbursed by 5,458 lenders – “an over 200% increase in the normal amount of SBA participating lending partners for the SBA’s flagship programs such as 7(a), 504 and microloans (which is approx. 1,800 lenders),” the agency pointed out.
More than 3.1 million loans, 66%, of the loans were for $50,000 or less. The overall average loan size continued to decrease to $108,000.
“Business owners and advocacy groups complain that the money in the Paycheck Protection Program was not fully put to work because the program created obstacles that stopped countless small businesses from applying. For those that did seek loans, the ever-changing application process proved to be an exercise in futility,” the Associated Press reports.
The SBA listed the Atlantic Region area totals as reflected on the report.
New York: 316,814 loans totaling $38,131,011,768 have been guaranteed. This is the 4th largest loan count total by state in the nation, following CA, FL, and then TX.
New Jersey: 144,523 loans totaling $17,099,289,297 have been guaranteed. This is the 2nd highest loan count and volume total in the Tri-State area (NY, NJ, CT).
Puerto Rico: 36,417 loans totaling $1,784,635,577 have been guaranteed.
U.S. Virgin Islands: 1,724 loans totaling $122,469,285 have been guaranteed.
“We at the SBA are committed to reach every single small business with the PPP Program, do not hesitate and go ahead and apply now,” said Maria de los A. de Jesus, acting district director for Puerto Rico and U.S. Virgin Islands’ .
Over the weekend, the SBA and Treasury Department also published a loan calculator document for maximum PPP loan amounts across a variety of business types, covering different business models.
Additionally, toward the end of last week, the SBA and Treasury published two Interim Final Rule appertaining to the PPP:
1 – Payroll costs that may be included on PPP loan applications submitted by certain boat owners or operators engaged in catching fish or other forms of aquatic animal life (fishing boat owners) that have hired one or more crewmembers who are regarded as independent contractors or otherwise self-employed individuals for certain federal tax purposes. A crewmember may be described in Section 3121(b)(20) of the Code if the fishing boat on which he or she works has an operating crew that is normally made up of fewer than 10 individuals and the crewmember receives as compensation for his or her work a share of the boat’s catch or of the proceeds from the sale of the catch, in an amount that depends on the amount of the catch.