SBA and Treasury Department Begin Public-Private Mobilization Effort to Distribute Funds

Jovita Carranza, Small Business Association (SBA) administrator, and Steven T. Mnuchin, Treasury Department secretary, recently announced that the SBA and Treasury Department have initiated a robust mobilization effort of banks and other lending institutions to provide small businesses with the capital they need as a result of the COVID-19 crisis. The Coronavirus Aid, Relief, and Economic Security (CARES) Act establishes a new $349 billion Paycheck Protection Program that will reportedly provide relief to millions of small businesses so they can sustain their businesses and keep their workers employed.

“This unprecedented public-private partnership is going to assist small businesses with accessing capital quickly,” said Carranza. “Our goal is to position lenders as the single point-of-contact for small businesses—the application, loan processing, and disbursement of funds will all be administered at the community level. Speed is the operative word; applications for the emergency capital can begin as early as this week, with lenders using their own systems and processes to make these loans. We remain committed to supporting our nation’s more than 30 million small businesses and their employees, so that they can continue to be the fuel for our nation’s economic engine.”