Resources for Small Business Investors

The Paycheck Protection Program prioritizes millions of Americans employed by small businesses by authorizing up to $659 billion toward job retention and certain other expenses. 

PPP LOAN FORGIVENESS APPLICATION. The Small Business Administration (SBA) has released additional Paycheck Protection Program (PPP) guidance in the form of the PPP Loan Forgiveness Application. According the to the SBA the form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:

• Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles.
• Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan.
• Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness.
• Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30.
• Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined.
• Find application and additional information here >

PPP OPERATIONS UPDATE. Due to the unprecedented demand for Paycheck Protection Program loans and to ensure equitable access and system integrity, SBA and Treasury implemented the following measures on 4/26: Pacing the number of loans processed in the E-Tran system for participating lenders; Instituting a maximum dollar amount at 10% of PPP funding authority that any lending institution will be able to originate, exclusive of the additional $60 billion preserved for lenders with assets under $50 billion (i.e. $60 billion cap); Implementing operational standards to ensure that lenders access PPP funds based on their asset size; Ensuring the Paycheck Protection Program continues to operate on a first-come, first-serve basis so that every small business has access to PPP loans to sustain their business and retain their employees; and Issuing guidance for lenders who have received a significant amount of loan applications.

• Guidance for bulk submission to PPP>
• How to calculate loan amounts>
• As of 5/13: FAQs on PPP>
• Foley Hoag webinar on PPP Loans. Concerned about whether to keep or return funds?  This is what you need to know about PPP loan compliance. Find the presentation here >
• Guidance on How to Apply for a PPP Loan >
• For a top-line overview of the program > CLICK HERE

Formal guidance regarding the Paycheck Protection Program has been published in the Federal Register. Follow the links below for final details and/or to submit comments.

• Interim Final Rule: Paycheck Protection Program Comment period closed.
• Interim Final Rule Supplement: Affiliation Rules Comment period closed.
• Interim Final Rule: Loan Increases Comments due by June 19.
• Interim Final Rule: Extension of Limited Safe Harbor Comments due by June 19.
• Interim Final Rule: Eligibility of Certain Electric Cooperatives Comments due by June 19.

SBIA Comment Letter: SBIA filed comments on May 1 in a letter to Treasury Secretary Mnuchin and SBA Administrator Carranza urging clarification of PPP guidelines in line with the statute and congressional intent. For more information and updates, visit Treasury's website on Assistance for Small Businesses. For lenders:

• If you’re a lender, more information can be found > HERE
• Non-bank lender application released for PPP loans.

For borrowers: 

• If you’re a borrower, more information can be found > HERE
• Find a PPP lender near you >
• The application for borrowers can be found > HERE

ADDITIONAL PPP FUNDING: Congress has reached agreement on additional funding for the Payment Protection Program as part of the Paycheck Protection Program and Health Care Enhancement Act, "Phase 3.5" coronavirus relief legislation.

• PPP Section-by-Section: An additional $310 billion has been provided for the Paycheck Protection Program (PPP).

PPP OVERSIGHT: U.S. Senate Small Business Committee Chair Marco Rubio announced that he will conduct aggressive oversight into use of Paycheck Protection Program funds to determine whether those who received funds needed them to support ongoing business operations.

SBIA LETTER RE: AFFILIATION RULES: SBIA sent a letter on April 1 to Treasury and the Small Business Administration regarding implementation rules governing the waiver of the SBA 7(a) loan program’s affiliation rules under the new Paycheck Protection Program. Read the letter >

JOINT LETTER RE: AFFILIATION RULES: SBIA joined 16 trade associations in sending a joint letter to SBA, Treasury and the Fed regarding implementation of the Paycheck Protection Program as well as lending facilities and programs established by the Federal Reserve and U.S. Treasury Department under the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act. Read the letter >

GUIDANCE FOR SBIC FUNDS: SBIA has issued the following guidance to SBIC funds providing financial assistance to small businesses consistent with the Paycheck Protection Act. Find the guidance here >

U.S. CHAMBER OF COMMERCE PRIMER: The U.S. Chamber of Commerce has produced a small business guide and checklist for SBA loans.  Download the primer >

On April 9, the Federal Reserve announced initial details of the Main Street Lending Program (MSLP), which will establish a credit facility intended for small and midsize businesses that are facing a credit squeeze in the wake of the COVID-19 pandemic. The program consists of a Main Street New Loan Facility (loans made on or after April 8) and a Main Street Expanded Loan Facility (loans made before April 8).

• On 5/5 the Fed updated its Main Street Lending Program page.
• Main Street Eligibility: The Federal Reserve has announced it's expanding the numbers of businesses that will be eligible for its “Main Street” emergency lending program, including lowering the minimum loan size and expanding the credit options.
• SBIA submitted comments to the Fed and Treasury regarding the ability of our members and their portfolio companies to access the new facilities provided by the Main Street Lending Program (MSLP). Read the letter >
• Institute for Portfolio Alternatives (IPA) sent a letter to Treasury on the Main Street Lending Program (MSLP). Read the letter >
• The U.S. Chamber has proposed enhancements to the Main Street Lending Facility to aid mid-size businesses. See the recommendations >

At SBIA, we are doing everything we can for our members as bills are introduced in Congress to provide relief from the economic impact of the Coronavirus, as well as working to prevent negative policies from being enacted.

Phase 4 Package: House Democrats released bill text and summaries for a next phase COVID-relief legislative package. Senate Republicans and the administration continue to take a wait and see approach and are unlikely to engage in detailed negotiations until June.

• Learn more >
• Full bill text >
• One page summary >
• Section-by-section summary >
• State and local relief provisions >
• Appropriations summary >

Pandemic Anti-Monopoly Act: Sen. Elizabeth Warren has proposed legislation to impose a moratorium on mergers and acquisitions. See bill summary >

Paycheck Protection Program and Health Care Enhancement Act: Congress has reached agreement on additional funding for the Payment Protection Program as part of "Phase 3.5" coronavirus relief legislation, the Paycheck Protection Program and Health Care Enhancement Act. Find additional information as well as full legislative text below.

• SCHUMER "DEAR COLLEAGUE": Senate Democratic Leader Chuck Schumer sent colleagues a letter re: "Phase 3.5" legislation.
• PPP Section-by-Section: An additional $310 billion has been provided for the Paycheck Protection Program (PPP).
• The legislation provides $60 billion for the Emergency Economic Injury Disaster (EIDL) program.
• Hospital Section-by-Section: $75 billion in reimbursements to hospitals and healthcare providers for COVID-19 related expenses and lost revenue.
• See the full Legislative Text.

Small Business Investor Tax Parity Act: Bipartisan legislation has been introduced to give fair and equitable treatment to shareholders in small and medium size American businesses.

• See the bill text >
• Read more about the bill >

Coronavirus Aid, Relief, and Economic Security (CARES) Act: Below is the FULL TEXT of the Stage 3 emergency economic stimulus package below as well as multiple section specific summaries, including SBIA’s summary of the small business provisions.

• FINAL TEXT of the CARES Act >
• SBIA SUMMARY: Top-line summary of the small business provisions in the final version of the CARES Act.  Download the summary >
• Final Section by Section Summary from Senate Majority Leader Mitch McConnell >
• Small Business Owners Guide to the CARES Act >
• Senate Small Business Committee Section by Section of Small Business Provisions in Final CARES Act >
• Senate Small Business Committee One-Pager >
• Senate Finance Committee summary of Tax and Unemployment Insurance sections >
• Senate Banking Committee Summary >
• Title-by-title summary from the Senate Appropriations Committee >
• Appropriations Committee Summary from Vice Chair Patrick Leahy (D-VT) >
• Senate Democrats Summary of CARES Act >
• Talking Points from House Speaker Nancy Pelosi >
• Senate Health Employment Labor Pension Committee (Healthcare Provisions) Summary >
• Summary of Judiciary Provisions in CARES Act >
• Indian Affairs Committee Summary >
• Procedures and Minimum Requirements for Loans to Air Carriers and Eligible Businesses and National Security Businesses
• Summary of Subtitle B - Air Carrier Worker Support >
  • Guidelines and Application Procedures for Payroll Support to Air Carriers and Contractors
• Senate Agriculture Committee Democrat Summary >
• Summary of Tax Provisions in the CARES Act >

PRICE LETTER: House Subcommittee Chair David E. Price (D-NC) summarizes funding for Transportation, HUD See the full text of the letter >

SCHUMER LETTER: U.S. Sen. Chuck Schumer sent a letter highlighting Democrat adjustments to the bill. See the full text of the letter >

PELOSI STATEMENT: U.S. House Speaker Nancy Pelosi released a statement on the Senate legislation. See the full statement here >

Letter to Treasury Secretary and Fed Chairman: U.S. Sen. Mike Crapo, Chairman of the Senate Banking, Housing and Urban Affairs Committee, has urged Treasury and the Federal Reserve to work quickly to help businesses understand what programs and facilities are available and how to access and apply for assistance. Download the letter >

• IRS relief for RICs and REITs: The IRS is temporarily reducing the minimum amount of cash that regulated investment companies (RICs) and publicly-listed real estate investment trusts (REITs) must distribute to shareholders in order to maintain eligibility for IRS Code Section 301 tax treatment.
• Economic Impact Payments: On March 30, the Treasury Department and the Internal Revenue Service announced that economic impact payments will begin in the next three weeks.
• Press Release: Help for Small and Midsize Businesses to Navigate Paid Sick and Family Leave Tax Credits
  • Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
  • Paid Family and Sick Leave Guidance from the Labor Department
• Treasury Encourages Businesses Impacted by COVID-19 to Use Employee Retention Credit
  • IRS: Employee Retention Credit Information
  • Employee Retention Credit FAQs

The SBA is deploying all tools within its discretion to assist small businesses impacted by COVID-19. As additional resources become available, they will be highlighted here.

• Interested in setting up a Small Business Investment Company (SBIC)? Find out what you need to know on SBIA's SBIC web portal.
• SBA's Small Business Guidance and Loan Resources >
• SBA Express Bridge Loans are now available in response to COVID-19 >
• In order to be eligible for certain Federal programs and certain Federal contracts and subcontracts, you must be a “small business concern.” SBA’s size regulations are used to determine eligibility for all SBA and Federal programs. Download "A Guide to the SBA’S Size Program and Affiliation Rules" >

The SEC continues to undertake operational initiatives, market-focused actions, and investor protection efforts as well as enact targeted assistance and relief in response to the effects of COVID-19.

• BDC Emergency Order
• SEC quick reference guide to actions taken for various market participants.
• SEC summary of operational initiatives, market-focused actions, guidance and targeted assistance and relief, investor protection efforts and other work of the agency in response to the effects of COVID-19.
• SEC Provides Temporary Additional Flexibility to Registered Investment Companies Affected by Coronavirus >
• SEC Extends Filing Period Deadlines for Coronavirus-affected Companies >
• AIC LETTER ON BDCs: AIC sent a letter to the SEC Chair urging regulatory relief for BDCs.  Find the letter here >

The Federal Reserve is mandated by Congress to promote maximum employment and stable prices, as well as the stability of the financial system, and is currently utilizing a range of tools to support households, businesses, and the U.S. economy.

• 8 ways the Fed is using its emergency powers to counter the pandemic.
• Joint statement on Small Dollar Lending >
• SBIA Staff Summary of Federal Reserve Facilities >
• Efforts being undertaken by the Fed >