Discover and read the best of Twitter Threads about #PPPloan
Most recents (16)
This week on @reveal, we talk about how business owners in majority White areas got approved for Paycheck Protection Program loans at much higher rates than those in majority Black, Latinx and Asian areas.
revealnews.org/article/rampan…
revealnews.org/article/rampan…
When #COVID19 shut down Annie Graham's clothing stores in Inglewood, she applied for a repayable government loan for small businesses during emergencies, but was denied based on her credit record. (📸by @jamesbernalfoto) 
She also applied for a forgivable #ppploan, but didn’t get approved because a bank mistakenly told her she had to prove she had staff on payroll. But she didn’t have staff. Many small businesses never get big enough to afford having staff.
1/ The Paycheck Protection Program, one of the largest bailouts since the Great Depression, promised to help small businesses.
Yet our analysis of more than 5 million #ppploans found widespread racial disparities in where those loans were given out. revealnews.org/article/rampan…
Yet our analysis of more than 5 million #ppploans found widespread racial disparities in where those loans were given out. revealnews.org/article/rampan…
2/ The disparities were visible across the nation.
We found that in almost every metro area with a population of 1 million or more, the rate of lending to majority White areas was higher than the rates for majority Latinx, Black or Asian areas. revealnews.org/article/which-…
We found that in almost every metro area with a population of 1 million or more, the rate of lending to majority White areas was higher than the rates for majority Latinx, Black or Asian areas. revealnews.org/article/which-…
3/ Businesses in majority White areas received loans at about twice the rate as those in majority Latinx areas in multiple major metro areas including New York, Dallas, Phoenix, San Francisco, San Diego and Las Vegas.
Remember my @DemocracyNow report on that gutsy little non-profit bank that took on Goldman Sachs? The Lower East Side People's Federal Credit Union (@LESPeoplesFCU) is owned by its customers, including Occupy Wall Street, 80% low-income Hispanics... gregpalast.com/goldman-sachs-…
You can help them out, stick it to Goldman, and put cash in your pocket by applying for a Payroll Protection Program (PPP) loan this week through them. lespeoples.org/small-business…
#AmericanRescuePlanAct #PPP #PPPLoan
#AmericanRescuePlanAct #PPP #PPPLoan
Biden’s new #COVIDRelief bill allows gig workers like me to get a loan equal to about 21% of your annual REVENUE shown on your Schedule C. It’s a loan you don’t have to pay back! (Thanks Joe!) And the Credit Union gets a fee for each loan. Help yourself—and fund the revolution!
I was happy to hear about the #MSLP initiative by the @federalreserve as part of the CARES Act - money that could help businesses weather these uncertain times.
It was announced 3 months ago though and keep getting changed before even going live. /1
It was announced 3 months ago though and keep getting changed before even going live. /1
However, after all the delays and revisions, @federalreserve and @BostonFed finally announced yesterday that they are accepting lender registrations, and encouraging lenders to start making the #MSLP loans.
But who are these lenders? /2
But who are these lenders? /2
Well the Fed says that any federally-insured deposit institution is an eligible lender.
So FDIC insured banks, credit unions, and savings and loan institutions can all participate.
Awesome! So just contact your bank right?
Well not so fast /3
So FDIC insured banks, credit unions, and savings and loan institutions can all participate.
Awesome! So just contact your bank right?
Well not so fast /3
1) "Federal Reserve developed the #MainStreetLending Program to help credit flow to small and medium-sized businesses that were in sound financial condition before the pandemic."
2) after initial announcement of #MainStreetLending Program, Fed Reserve expanded it to: Create a 3rd loan option, w/increased risk sharing by lenders for borrowers with greater leverage &
Lowered the minimum loan size for certain loans to $500,000
federalreserve.gov/newsevents/pre…
Lowered the minimum loan size for certain loans to $500,000
federalreserve.gov/newsevents/pre…
3) this resulted in 3 loan (🍕) options: plain, pepperoni & mushroom: "termed new, priority, & expanded" 4 year loans:
New: $500K Minimum Loan Size
Priority: Ditto
Expanded: $10M Minimum Loan Size & up to a TON!
New: $500K Minimum Loan Size
Priority: Ditto
Expanded: $10M Minimum Loan Size & up to a TON!
We're live with ASMP's Wednesday Webinar. Join us here or live on @Facebook facebook.com/asmpnational/v…
Mike Klipper is updating us on the additional relief legislation now being considered by the House. Dems and Reps are "very far apart." The President has dubbed the legislation "Dead on Arrival." #HeroesAct
As always, our disclaimer, courtesy @MaddreyPLLC
US Senate has agreed to additional CARES Act funding & is adding an incremental $75B to the original $100B for #hospitals & #physicians —resolving any doubt—“language remains the same as CARES Act”—allocation to rural hospitals & “hot zones” presumably TBD by @HHSGov —vote soon.
2/ SBA’s #PPPloans program slated to receive an additional $250B unrestricted + $60B for smaller banks + $50Bin EIDL loans + $10B in EIDL grants + $2.1B in SBA administrative expenses—really? Who wants to bid w/ me that we can administer this program for a paltry $1.9B? Who....
3/ said famously “a billion here, a billion there, and pretty soon you’re talking real money,”? Senator Everett Dirksen (R-IL) who has a Senate office Bldg. named for him in DC—how in the world do we plan to pay for all of this very necessary spending?
FYI... the PPP loan program for small businesses was funded with $350bn.
The U.S. has 30.2 million small businesses.
Thats an average of $10,769 per small business. It should have been plenty to help close a two month gap.
1/
The U.S. has 30.2 million small businesses.
Thats an average of $10,769 per small business. It should have been plenty to help close a two month gap.
1/
A loophole in the CARES act allowed national corporations with less than 500 employees *per location* to qualify each individual location as a "small business."
Ruth's Chris steakhouse qualified.
2/
Ruth's Chris steakhouse qualified.
2/
Last year they made $42 million in profits.
Last year they spent $41 million in stock buybacks.
Last week, they received $20 million in PPP loans - earmarked for small businesses.
3/
Last year they spent $41 million in stock buybacks.
Last week, they received $20 million in PPP loans - earmarked for small businesses.
3/
Some Thoughts on the #PPPloans and other small business stimulus now that the funds have dried up (hopefully temporarily). Some overriding thoughts I have are 1. The method and some of the issues of getting funds out, 2. The purpose of the funds, and 3. Where we go from here. 1/x
On the methodology of the #PaycheckProtectionProgram I know given the data out there that loans seemed skewed towards larger "small" businesses. I think that stems from a number of reasons. The first being just how banks work. 2/x
Banks are generally fairly conservative, risk adverse institutions- particularly post the banking collapse in 2008/2009. Having worked in that industry during that time period, I got to see the impact of this collapse and how banks changed as a result. 3/x
#PPP UPDATE 1/7:
I continue to see lots of misinformation reported & repeated on PPP.
This program is new to everyone,so not claiming its intentional.
But we can’t address the problems if we don’t understand how to distinguish between what WAS a problem & what IS a problem.
I continue to see lots of misinformation reported & repeated on PPP.
This program is new to everyone,so not claiming its intentional.
But we can’t address the problems if we don’t understand how to distinguish between what WAS a problem & what IS a problem.
#PPP UPDATE 2/7:
1st: Yes lots of confusion early on . Because no one on earth had ever done a #PPPloan until 11 days ago.
But lenders received clear guidance on the most important open questions last Thursday from Treasury & last Friday from Federal Reserve.
1st: Yes lots of confusion early on . Because no one on earth had ever done a #PPPloan until 11 days ago.
But lenders received clear guidance on the most important open questions last Thursday from Treasury & last Friday from Federal Reserve.
#PPP UPDATE 3/7:
2nd:Main reason some #smallbusiness having trouble getting into PPP is banks are overwhelmed with applications. Even the biggest banks are struggling with the level of demand.
One of the characteristics of crisis is that demand is greater than initial capacity.
2nd:Main reason some #smallbusiness having trouble getting into PPP is banks are overwhelmed with applications. Even the biggest banks are struggling with the level of demand.
One of the characteristics of crisis is that demand is greater than initial capacity.
1) On Friday @IRSnews issued NEW #FAQs resolving whether an employer that receives a #PPP #Loan may defer Employer portion of #socialSecurityTaxes under #CARESAct irs.gov/newsroom/defer…
2) Employers receiving #PPPloans may not defer the deposit&payment of the Employer share of #SocialSecurity tax "otherwise due AFTER the employer receives a decision from the lender that the loan was forgiven." #IRSFAQ #1
3) The deferral applies to deposits&payments of an Employer's share of #SocialSecurity #tax that would otherwise be required to be made during the "Payroll Tax Deferral Period" (March 27 through December 31, 2020). #CARES #Section2302 @IRSnews #FAQ 2
Key resources for small businesses & startups applying for #PPPloans:
First, here's everything that Treasury/SBA have published so far, including the Monday night FAQ on affiliation rules:
1/
home.treasury.gov/policy-issues/…
First, here's everything that Treasury/SBA have published so far, including the Monday night FAQ on affiliation rules:
1/
home.treasury.gov/policy-issues/…
Second, here's a helpful memo from @nvca with step-by-step instructions on how #PPPloan applicants need to accommodate investors with a 20-49.999% stake & stay eligible for #PPP in the first place:
2/
nvca.org/wp-content/upl…
2/
nvca.org/wp-content/upl…
Fri ~11pm: Treasury/SBA release first guidance on #PPPloans, helping large religious orgs & not small businesses.
Mon ~11pm: Second guidance just dropped. There's a typo in the URL ("Frequenty Asked Questions"). Not a good sign?
Let's dive in...
1/
home.treasury.gov/system/files/1…
Mon ~11pm: Second guidance just dropped. There's a typo in the URL ("Frequenty Asked Questions"). Not a good sign?
Let's dive in...
1/
home.treasury.gov/system/files/1…
Startups, small businesses, & investors were pleading for a bright-line rule for "affiliation," since eligibility for a #PPPloan may hinge on it.
Bright side: Banks can rely on the loan applicant's certifications, which should speed things up & keep SBA getting bogged down…
2/
Bright side: Banks can rely on the loan applicant's certifications, which should speed things up & keep SBA getting bogged down…
2/
Less helpful: Implied requirement that any minority shareholder with certain rights must "irrevocably waive or relinquish" these rights.
Will this FAQ help anyone, or just perpetuate the current scramble to amend investment docs (& only for those with sophisticated lawyers)?
3/
Will this FAQ help anyone, or just perpetuate the current scramble to amend investment docs (& only for those with sophisticated lawyers)?
3/
🚨SBA just released its new "affiliate rule" for the #CARESAct #PaycheckProtectionProgram & only made one change:
Faith-based organizations are exempt.
That's it.
Zero relief for Main Street & VC-backed firms.
Here's the full Interim Final Rule:
1/
home.treasury.gov/system/files/1…
Faith-based organizations are exempt.
That's it.
Zero relief for Main Street & VC-backed firms.
Here's the full Interim Final Rule:
1/
home.treasury.gov/system/files/1…
SBA also released this two-page press release, which has no force of law and is easy to misinterpret. All it does is restate existing rules & statute.
Next up: a quick restatement of the restatement for non-lawyers...
2/
home.treasury.gov/system/files/1…
Next up: a quick restatement of the restatement for non-lawyers...
2/
home.treasury.gov/system/files/1…
(a) If you are a restaurant or hotel, a franchisee, or an SBIC-backed company, *no affiliation rules apply to you,* because Congress said so.
It doesn't matter if your parent company has a zillion employees; as long as your entity has <500 employees, you can get a #PPPloan.
3/
It doesn't matter if your parent company has a zillion employees; as long as your entity has <500 employees, you can get a #PPPloan.
3/
Bank of America is blocking small businesses from getting COVID loans/grants unless they've borrowed from BofA before. Other banks will follow suit.
Why? Banks want to ensure small biz with prior loans survive & use grants to pay them back.
Other small biz left out in the cold.
Why? Banks want to ensure small biz with prior loans survive & use grants to pay them back.
Other small biz left out in the cold.
Hearing from multiple sources that community banks are most promising so far. Please share what you are finding below so we can learn together.
Here's more info on B of A (and, I'd bet, soon to be other banks) denying #PPPloan applications from small businesses desperate for help. This wasn't what the government intended but it's what you get when you put banks in charge of taxpayer money
americanbanker.com/news/bofa-offe…
americanbanker.com/news/bofa-offe…
Are you kidding me @BankofAmerica with this requirement of having a credit card to apply for the PPP? What type of scam is this. I have been a loyal customer for years with my business accounts. #bankofamerica #PPPloan
Apparently you are not here to support my small business @BankofAmerica, you liars.
Also I have a Line of Credit with BOA for the security deposit on our office we cannot use. So that is a lending relationship and they STILL won't let me apply for this.
