Okay, gonna do a quick thread on my first impressions of this since there seems to be confusion. 1/n

First, the Treasury factsheet: https://home.treasury.gov/system/files/136/PPP%20--%20Overview.pdf?fbclid=IwAR2aD06s9n3SVmddBgB7A_QeC-0a1_UzvwD-NmybaogIgJIu5W4N-qZC1iE

And the SBA guidance: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources https://twitter.com/whinecough/status/1245151794906488835

1. It's a loan program. But loans are *fully forgiven* if 75% or more of them go towards payrolls. Including benefits. And (rapid) rehires. So it should function like a grant program. 2/n

2. The reason why it is structured as a loan program is because it can be administered through FDIC banks, credit unions, etc. I.e., if this works well, you can walk into your local bank and get cash fast. Maybe on the spot?

3. But the banks *can't* profit; no fees allowed. Also no collateral, no personal guarantees required. If you go over 25% on non-payroll borrowing, then payments are paused for 6 mo (extendable to 12), with 0.5% interest. I.e., basically no-interest.

4. This applies to small businesses, sole proprietorships, non-profits, tribal concerns, veterans orgs, self-employed, and independent contractors. I.e., almost everyone not working for a large corp.

5. Payroll support is for 8 weeks, which buys us a good amount of time. Also creates infrastructure if it needs to be expanded further.

So, as I read it, and if it works, it's full payroll support, for free, without having to go through the SBA directly, and also support for business rent/mortgage/utilities payments. That's huge!

And because it's a Treasury program it can be easily backstopped by the Fed, which allows for quick expansion if needed (it will be needed).

Unless I'm missing something this is a very big deal. It needs to be expanded to ALL workers, not just small businesses. & it will need more funding support (and/or something creative like a Fannie/Freddie for SMEs). But I never thought this admin would do something this decent.

They've released the application form. Very simple. https://www.sba.gov/sites/default/files/2020-03/Borrower%20Paycheck%20Protection%20Program%20Application_0.pdf