Interview, Fireside Chat, Conference Presentation
Jovita Carranza, Administrator of the U.S. Small Business Administration
- Goldman Sachs hosted a call on April 9, 2020, featuring David Solomon (Chairman & CEO) and Jovita Carranza (SBA Administrator) to address the Paycheck Protection Program (PPP) application process.
- The SBA staff operates 24-7, with Carranza noting that she has provided direct contact information to congressional leaders to expedite issues.
- Small businesses contribute $10–$11 trillion to the U.S. market, representing approximately 50% of the nation's GDP and nearly 48–49% of all employees.
- The PPP has expanded to include over 430 new banks, in addition to the existing 3,700 lenders, with over $100 billion in loans already guaranteed.
- The PPP funding pool is cited at $349 billion, with potential increases noted based on pending Senate proposals.
- The deadline for submitting PPP loan applications is June 30, 2020.
- The 8-week forgiveness period begins on the date the PPP funds are disbursed to the borrower.
- Loan forgiveness applies to payroll costs for employees who are rehired or returned from furlough.
- Borrowers cannot use funds from both the PPP and the Economic Injury Disaster Loan (EIDL) for the same purpose.
- The PPP offers loans up to $10 million at a fixed 1% interest rate with a 2-year maturity; forgiveness is available if funds are used for payroll, rent, mortgage interest, or utilities (non-payroll costs capped at 25% of forgiven amount).
- The EIDL provides up to $2 million per entity at a low interest rate (3.75% for businesses, 2.75% for nonprofits) with a maturity of up to 30 years for working capital needs beyond PPP coverage.
- The SBA has launched a "Find a Lender" tool on sba.gov and is onboarding fintech companies to expand online lending access by geography.
- Carranza reported receiving requests from businesses to expedite permits and licenses to facilitate the production of essential goods like masks and meals during the crisis.
- Carranza advised small businesses to inventory current workforce skills for aggressive development and to plan for inevitable future crises, noting that the entrepreneur spirit typically rebounds quickly.