REMINDER: Paycheck Protection Program for Small Businesses Starts April 3
As a friendly reminder, the Paycheck Protection Program (“PPP”), which authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis, starts on Friday, April 3. It is unclear if this means Guam will have a head start but we encourage that Guam small businesses start trying to apply today, April 3 ChST. There is a funding cap for the PPP and the Treasury Secretary is now advising that because of high participation, it is anticipated that not more than 25% of the forgiven amount may be for non-payroll costs (i.e., rent, utilities, etc.). (See https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf.)
Also note that banks are reportedly still struggling to understand how to make these loans eligible for a government guarantee because the Trump administration has failed to provide them with the necessary guidelines and has set requirements for the loans that are unworkable. (See WSJ: The Rush for $350 Billion in Small-Business Loans Starts Friday. Banks Have Questions; Politico: Banks warn of chaotic launch of small business lending program.) For instance, the N.Y. Times has reported that lenders are still waiting for technical information about how to underwrite the loans and collect reimbursement on those that qualify for forgiveness. (NY Times: Banks Warn of ‘Overwhelming’ Demand and Messy Start for Small Business Loans). Applicants should be prepared for a somewhat cumbersome application process.
According to the Guam Economic Development Authority (GEDA), Guam lenders participating in PPP include:
ANZ Guam, Inc.: Peter Valdez, Head of Commercial: 479-9065
Bank of Guam: Janine Eustaquio, Credit Officer: 472-5349
Bank of Hawaii: Mark Tokito, SVP, Guam Commercial Banking Center: 479-3643
Coast 360 Federal Credit Union: Cathy Champaco, Chief Lending Officer: 479-8206
Community First Guam FCU: Rick Scroggs, VP/Business Development Officer: 472-8210
First Hawaiian Bank: Kieron “Pip” Ward, VP/Team Leader: 475-7857
Applicants for PPP loans should apply directly with these lenders.
See links below for more information about the PPP application process:
GEDA: CARES Act Relief Summary
Sample Application Form
U.S. Small Business Administration: PPP Overview
Treasury: PPP Overview
Treasury: PPP Information Sheet for Lenders
Treasury: PPP Information Sheet for Borrowers
U.S. Chamber of Commerce: PPP fact sheet