California Banks Still Awaiting Guidance as Paycheck Protection Program Set to Launch
SACRAMENTO, Calif. – Since the beginning of this national pandemic, California’s banks have been outreaching and working proactively with customers to minimize the adverse financial effects of the crisis caused by the COVID-19 virus.
Tomorrow the Paycheck Protection Program (PPP) is set to launch. Passed as part of the coronavirus economic stimulus package, the CARES Act, this program makes available $350 billion in loans to help small businesses who are in need of economic relief during these challenging times. Banks of all sizes look forward to the opportunity to participate in this program because it’s the right thing to do and because they want to help their business customers and help the economy get back on track.
“Less than 24 hours before these loans are to be made available, our banks are still awaiting important guidance from the U.S. Treasury and Small Business Administration (SBA) on important implementation aspects relative to administering these loans,” said Steve Andrews, president & CEO of the Western Bankers Association. “Participating SBA lenders, including eligible California banks, will work as quickly as they can to absorb this pending guidance and pivot their systems and teams accordingly so that they can assist their small business customers. Banks will do everything they can to process loan applications quickly, but businesses should expect it may be a period of time before the program is fully functioning.”
“While the PPP will be one aspect of relief available to small businesses, we encourage any customer that might be experiencing financial hardship to reach out to their bank. Our banks continue to actively reach out to their customers and are working one-on-one with them to find solutions to each customer’s unique financial situation,” concluded Andrews.