US coronavirus economic package small business lending program begins Friday

I posted earlier on comments from Mnuchin

• US Treas Sec Mnuchin says first support payments to be direct deposited within 2 weeks

Mnuchin spoke on the support provisions for small business. In a nushell the small business support package:

• small businesses are eligible
• loans with maturity of 2 years
• interest rate of 0.5% … note this has been set now at 1%
  loan payments do not need to be made for the first 6 months
  collateral, personal guarantees are not required
  fees are zero
  loan covers expenses back dated to Feb 15, through to June 30 this year
  loan can be forgiven

This is a part of the recently approved Coronavirus Aid, Relief, and Economic Security (CARES) Act. You'll recall this Act was the subject of a few weeks haggling in the Congress but it finally passed and President Trump singed it into law.

Like the headline says, its slated to begin Friday US time, but some banks are saying they are not yet prepared:

• say they are still awaiting guidance from the Small Business Administration and Treasury
• systems, software etc. need to be set.

Time is of the essence in this economic response to the virus damage. Keep an eye on this as it develops, delays will be a negative input for markets.