LANSING MI, April 2020 – Following bipartisan negotiations, the U.S. Senate, late Tuesday, unanimously passed legislation to provide more than $320 billion in new funding for the Small Business Administration’s Paycheck Protection Program (PPP). The House must now approve the bill, which is expected to do in a floor vote later this week.
Of the more than $320 billion appropriated for PPP loans, a minimum of $30 billion will be set aside for community development financial institutions, banks and credit unions with less than $10 billion in assets. Another $30 billion at least will go to banks and credit unions with assets between $10 billion and $50 billion. (Institutions in these categories may originate PPP loans above these levels.) The bill also includes an additional $60 billion in funding for the SBA’s Economic Injury Disaster Loan (EIDL) program and provides long-sought clarity that agricultural businesses may apply for EIDL funds.
“In just under two weeks, the PPP has provided an economic lifeline to over one million small businesses across the country and has allowed these small businesses to remain viable – and maintain their workforces – during the COVID-19 pandemic. The MBA applauds the efforts of the U.S. Senate, and specifically Senators Stabenow and Peters in supporting this bill,” stated T. Rann Paynter, President & CEO, Michigan Bankers Association. “Michigan’s banks will continue to stand by their small business customers and do everything they can to deliver this relief quickly and efficiently, saving jobs and limiting the economic damage from this pandemic.”
View mibankers.com for the latest COVID-19 information.
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 2,800 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
