Newly added FAQs from the Small Business Administration and the Treasury Department today address two challenges with the Paycheck Protection Program that MBA, state bankers associations and the ABA have been urgently raising with officials: the promissory note to use with PPP loans and the expectation for a five-day period between loan approval and funding.
Regarding the promissory note, SBA clarified that lenders may use their own note or an SBA form. The agency released its own form last night, but it may be revised following industry feedback to meet lenders’ operational needs.
Another challenge reported by lenders has been the question of how soon PPP loan funds must be disbursed, and MBA, the state associations and ABA have aggressively sought clarity from SBA and Treasury, particularly amid the choppy rollout of the PPP. According to the latest FAQs, the lender must make the first disbursement of the loan no later than 10 calendar days after the loan is approved.
About the Michigan Bankers Association
The Michigan Bankers Association (MBA), the voice of the banking industry since 1887, consists of Michigan financial institutions with more than 2,300 branches located throughout the state. The MBA promotes strong communities and economic activity in Michigan by advancing a positive business environment. MBA assists banks by offering products and services to reduce expenses and increase profitability through the strength of the association.For more information, visit www.mibankers.com.
