After President Donald Trump signed the Paycheck Protection Program and Health Care Enhancement Act into law Friday afternoon, the Small Business Administration and Treasury Department announced that the Paycheck Protection Act loans will resume.
The SBA will start accepting PPP loan applications on April 27 at 10:30 a.m. Eastern time from approved lenders on behalf of any eligible borrower.
“This will ensure that SBA has properly coded the system to account for changes made by the legislation,” the SBA and Treasury said in a joint statement.
The PPP has supported more than 1.66 million small businesses and 30 million jobs, according to the statement.
Karen Barr, president and CEO of the Investment Adviser Association in Washington, which represents SEC-registered investment advisors, told ThinkAdvisor in a Friday email message that IAA is “hearing that a number of smaller firms have applied or are interested in applying for PPP loans, given the economic uncertainty.”
IAA’s annual Evolution Revolution report shows that the “typical” RIA has nine nonclerical employees and $341 million in assets under management.
The 2019 report also showed that the vast majority of SEC-registered investment advisors are small businesses; 56.9% (7,387) of advisory firms reported that they employed 10 or fewer nonclerical employees, and 87.5% (11,367) reported employing 50 or fewer nonclerical workers.
The SBA and Treasury urged all approved lenders to process loan applications previously submitted by eligible borrowers and disburse funds expeditiously.
“All eligible borrowers who need these funds should work with an approved lender to apply. Borrowers should carefully review PPP regulations and guidance and the certifications required to obtain a loan,” the SBA and Treasury said.
The Federal Reserve Board announced Thursday that to facilitate lending to small businesses via the PPP it is working to expand access to its Paycheck Protection Program Liquidity Facility (PPPLF) for additional SBA-qualified lenders as soon as possible.
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