(Updated April 3, 2020)
With the $2.2 trillion stimulus bill working its way through congress, there are steps you can take to prepare for the Paycheck Protection Program. If you haven't already heard, the program will provide up to $10 million in a forgivable loan through the Small Business Administration to cover payroll and other expenses. See our previous post for more details.
Right now, we know that loans will at least be facilitated through existing SBA 7(a) lenders. While the Administration has indicated they will be expanding availability to all FDIC banks, we expect it may take a little longer to get set up. As of April 3, Bank of America is processing applications for existing borrowers only (i.e. business customers with a line-of-credit or credit card), but we expect they will face pressure to broaden availability to all existing customers. And many banks and credit unions are prioritizing their existing customers (i.e. business checking or savings accounts).
Below is a map with contact information for NYC area banks and credit unions who have originated SBA 7(a) loans in the past. While it's not a guarantee they will participate in this program, they should be more familiar than the average bank. And note that the mapped addresses show only the lender's main branch, so there may be additional branches closer to you. Also check out the SBA's national list of the most active SBA lenders here. Expect long lines once the program's details roll-out, so we recommend connecting to your existing lender or an SBA participant ASAP so you can get in the queue.
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