SBA Lender News: New procedural notices, CFI definition & one-page overviews

 

Minnesota District Office

u s small business administration
paycheck protection program, PPP

Paycheck Protection Program Updates

Two New Procedural Notices

Repeal of EIDL Advance Deduction

Effectively immediately, SBA will no longer deduct EIDL Advances from forgiveness payments remitted to PPP lenders. Procedural Notice 5000-20075 explains the process for reconciliation payments for previously-deducted EIDL Advance amounts.

Repeal of EIDL Advance Deduction

SBA Form Modifications

Procedural Notice 5000-20074 highlights the modifications to the 3506, 3507 and 750 CA forms to comply with the Economic Aid Act.  

SBA Form Modification

 

What is a CFI?

Per the Economic Aid Act, a community financial Institution is one of four types of lenders:

  1. Community Financial Development Institution
  2. Minority Depository Institution
  3. Community Development Corporation
  4. Microlender Intermediary

As of Monday, Jan. 11, CFIs will be able to submit First Draw PPP loan applications and Second Draw PPP loan applications to the SBA starting Wednesday, Jan 13.

 

First Draw and Second Draw PPP Loan Overviews

On Jan. 8, the SBA posted overviews of the First Draw and Second Draw PPP loans that include details on eligibility, forgiveness and more.

First Draw PPP

 Second Draw PPP

For more information and updates, visit SBA.gov/PaycheckProtection or Treasury.gov/CARES.


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