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Rep. Loudermilk Business Brief: Non-Bank Lender Info
Posted by on April 9, 2020 | comments
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Dear Small Business Owner,

The Small Business Administration (SBA) has just released the non-bank and non-insured depository institution lenders PPP application form. This form is for non-bank lenders, like financial technology (fintech) companies, to be approved to originate PPP loans. Depository and non-depository lenders are eligible to participate as lenders in the Paycheck Protection Program if they meet the criteria described in the attestations in the form.
Non-Bank & Non-Insured Depository Institution Lender Form

Non-Bank & Non-Insured Depository Institution Lender Form

Additionally, the Federal Reserve and the Treasury Department announced up to $2.3 trillion in additional lending programs to support the economy.

Program summary:

• The Fed will begin providing financing to financial institutions which are making PPP loans by using PPP loans as collateral. This will enable lenders to distribute more PPP funds to more small businesses.
• The Federal Reserve and Treasury announced the Main Street Lending Program to lend to mid-size businesses with up to 10,000 employees.
• The Federal Reserve expanded its Term Asset-Backed Securities Loan Facility (TALF) by adding commercial mortgage-backed securities as assets which can be used as collateral for TALF loans. (My office requested that the Federal Reserve do this, as it will help maintain liquidity in the commercial real estate lending market.)
• The Federal Reserve and Treasury Department announced the Municipal Liquidity Facility, to provide $500 billion in lending to states and localities.
• More info from the Treasury Department can be found HERE

The Paycheck Protection Program was created under the CARES Act stimulus package passed by Congress. This $350 billion program is designed to provide cash-flow to small businesses impacted by the current COVID-19 health crisis.

Sincerely,

Barry Loudermilk
Member of Congress
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