Thread by @marcorubio

ATTENTION Lenders, #SmallBusiness & media interested in #Ppploans. The following 13 part thread outlines many of the impediments we saw on day one of the program & how they can/will be fixed.

I apologize for the length of the thread but important details below. 1/13

Day one saw complications you would expect with unprecedented $349 BILLION emergency plan passed just 7 days ago

Despite this as of 6:06 pm Friday 13,669 #SmallBusiness owners received #Ppploans valued at more than $4.3B

However a number of outstanding issues to address 2/13

On Friday we had various & extensive conversations with @SBAgov & @USTreasury about the issues that emerged on day one of #PPPloans. I expect that early next week they will be releasing additional guidance that should provide clarity & help resolve many of these issues 3/13

First issue is that for now most banks only providing #PPPloans to existing clients because the @SBAgov interim final rule only exempts money- laundering requirements for existing customers. But that makes it difficult for #SmallBusiness if they are denied by their bank. 4/13

The good news is multiple FinTechs including @PayPal & other online lenders are ready,able & willing to process #PPPloans for them & anyone else.But they need @USTreasury to release application for nonbank lenders to become certified.

I expect that very early next week. 5/13

Second issue is that because of requirement in @SBAgov interim final rule that lenders hold loans for 7 weeks before they can be purchased,we will need a purchase mechanism through @USTreasury or @federalreserve ASAP in order for community banks & FinTech to make #Ppploans 6/13

Third issue is that in order for lenders to confidently participate they need further clarity on:
- @SBAgov affiliation rules for #SmallBusiness & 501(c)(3)
- Inconsistency on general eligiblity requirements for #Ppploans
I expect that very early next week as well.

7/13

Fourth issue is that the @SBAgov interim final rule has contradicting guidance determining whether #SmallBusiness owners should include independent contractors 1099’s in payroll cost calculation.
8/13

Fifth issue is that In calculating avg monthly payroll to determine #Ppploans amount we need @SBAgov to make clear our intent when writing the bill that gross payroll would be applied to calculation to ensure federal tax withholding & FICA burden isn’t on #smallbusiness 9/13

Sixth issue is that E-Tran, the @SBAgov internal system for loan applications has been slow due to the volume of applications Friday.

SBA has contracted with Amazon Web Services to ensure E-Tran system issues are resolved moving forward. 10/13

Seventh issue is that some community banks have reported issues with accessing the AWS portal which @SBAgov uses to provide access to non-SBA lenders.

We have discussed this also with SBA which assured us they are addressing this problem. 11/13

Eighth issue is money. Based on the demand we saw on Day One it is clear we will need more money for #PPP by late May.

Our rough estimate is that if 2/3 of the lenders that will participate in #PPPloans aren’t up & running yet,the $349 billion will run out around 6 June. 12/13

When you launch something this unprecedented & far reaching,just 7 days after it became law,you are going to have some problems

The GOOD NEWS is every problem we saw on Day One of #Ppploans can be fixed

We will stay on it to make sure it gets better each day forward
13/13