The Banking Lawyer
Insights from Boardman Clark's Banking Group.
Wait to Close and Fund PPP Loans
04.07.20
We are cautioning banks NOT to close and fund PPP loans until the SBA issues guidance on the closing and funding procedures. We still do not know what forms/language to use, whether the loans can be interest only or need to be fully amortized, or whether there are limits on default rate. The SBA has made it clear that banks must wait until they get a loan number from the SBA, and the information about how to document, close and fund
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