Update on the SBA Paycheck Protection Program for the Shrimp Industry

The Southern Shrimp Alliance has been working on the national, local and individual
levels to ensure the many small businesses that comprise the US the shrimp industry
have access to, and are fully informed on how to access federal coronavirus response
programs – in particular, the Small Business Administration (SBA) Paycheck Protection
Program (PPP).

Last Thursday, after less than two weeks in operation, the PPP program ran out of
funding and the SBA suspended accepting any further applications. Many shrimp
industry small businesses in dire need of assistance had submitted applications that
have since remained unprocessed.

In addition, those in the shrimp industry that are self-employed – which includes many
shrimp boat owners as well as those shrimp boat crew that are 1099 employees – were
especially hard hit because the SBA final rule for how the self-employed can apply for
PPP loans and qualify for loan forgiveness was published only shortly before the
program’s funding ran out.

Over this past weekend, the House, Senate and White House began and, yesterday,
concluded negotiations to address the PPP program funding shortfall. The Senate
passed this legislation on Tuesday evening, Speaker Pelosi has indicated that they will
vote and pass the bill in the House on Thursday, and President Trump is expected to
sign the bill into law immediately thereafter. The bill includes an additional $310 billion
to fund the PPP loan program.

Depending on the precise timing, these funds could become available so that the SBA
can resume accepting and processing both new and previously received applications as
soon as Thursday, or perhaps on Friday this week.

Because these funds may again be exhausted relatively quickly, SSA strongly urges
any shrimp industry small business owners that have yet to apply to read this SBA final
rule for how to successfully apply for a PPP loan and qualify for loan forgiveness, and to
contact their bank immediately to prepare pre-application documentation. Do not be
intimidated – much of this is presented in simple and easy to understand Q&A format.
https://home.treasury.gov/system/files/136/PPP–IFRN%20FINAL.pdf

In addition, because many of the self-employed in the shrimp industry were unable to
apply for the PPP program before the funds ran out, SSA also strongly urges them to
read this second and separate final rule that provides clear and relatively simple Q&As
for how the self-employed can access the PPP program. Once again, the self-
employed should contact their banks immediately to prepare the necessary pre-
application documentation. https://www.sba.gov/sites/default/files/2020-04/Interim-Final-Rule-Additional-Eligibility-Criteria-and-Requirements-for-Certain-Pledges-of-Loans.pdf

In both cases, the banks will then be able to submit your applications immediately, and
the SBA can begin processing those applications, once the funds become available
later this week.

Applicants should monitor this site where the SBA should post a notice when they are
able resume accepting and processing applications. https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

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