Small Business Information
The Paycheck Protection Program
The deadline for small businesses to apply for PPP has passed! However, for current PPP applicants, the Treasury Department did update the final rule of the program on August 11th. For more information:
SBA Website (PPP Program Information) https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program.
Treasury Website (PPP Final Rule Addendum): https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
SBA Website (EIDL Loan Program): https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources.
Main Street Business Lending Program
On April 9, 2020, the Federal Reserve announced the creation of a Main Street Business Lending Program. The Main Street Lending Program was established with the approval of the Treasury Secretary and with $75 billion in equity provided by the Treasury Department from the CARES Act. For more information about the Main Street Lending Program, visit www.bostonfed.org/mslp.
- This facility will ensure credit flows to small and mid-sized businesses that may not have been supported through the Paycheck Protection Program or the Fed’s other lending facilities.
- The Treasury will invest $75 billion into a special purpose vehicle (SPV) to purchase eligible loans.
- The facility can purchase up to $600 billion in loans.
- The SPV will stop purchasing loans on September 30, 2020, unless extended.
For more information on the Main Street Business Lending Program and eligibility requirements, click here.
For a FAQ Sheet on the Main Street Business Lending Program, click here.
For more information on Federal Reserve Facilities, click here.
The Federal Reserve Board modified the Main Street Lending Program to provide greater access to credit for nonprofit organizations such as educational institutions, hospitals and social service organizations. As detailed in term sheets released on Friday, July 17, 2020, the Board approved two new loan options to provide support to a broad set of nonprofit organizations that were in sound financial condition prior to the pandemic.
Based on public feedback to proposals released for comment on June 15, the following changes were made:
- The minimum employment threshold for nonprofits was lowered from 50 employees to 10.
- The limit on donation-based funding was eased.
- Several financial eligibility criteria were adjusted to accommodate a wider range of nonprofit operating models.
- Each organization must be a tax-exempt organization as described in section 501(c)(3) or 501(c)(19) of the Internal Revenue Code.
Indianapolis Small Business Assistance