COVID-19 UPDATES
Action Alert: Urge Congress to Pass a Standalone PPP Forgiveness Bill
The IBA is joining with the American Bankers Association and Independent Community Bankers of America to urge members of Congress to pass a standalone Paycheck Protection Program forgiveness bill before they break for recess in approximately three weeks. Legislators still have time to take action on existing PPP forgiveness bills (S. 4117 and H.R. 7777), but negotiations have stalled while broader pandemic relief packages are being debated. Meanwhile, small businesses continue to struggle while they wait for clarity on PPP forgiveness.
Relief for small businesses should not be held up because of differences over a larger pandemic relief package. PPP forgiveness legislation (S. 4117 and H.R. 7777) already has bipartisan support and could be passed on its own. Contact your lawmakers today and urge them to pass standalone PPP forgiveness legislation.
State Associations Urge Treasury, SBA to Streamline PPP Forgiveness
The IBA and 51 other bankers associations on Friday urged the Department of the Treasury and the Small Business Administration to create a streamlined a Paycheck Protection Program loan forgiveness process. In a letter addressed to Treasury Secretary Steven Mnuchin and SBA Administrator Jovita Carranza, the groups asked that the agencies use their administrative authority to establish a simplified loan forgiveness application process.
“You both have stated on multiple occasions that the goal of the PPP is for these loans to be forgiven,” the groups wrote. “On behalf of our member banks and their millions of small business customers, we urge you to meet that goal and improve the loan forgiveness process for participating small businesses across the country.” The groups also reiterated support for two recently introduced bills, S. 4117, the Paycheck Protection Small Business Forgiveness Act and its House companion, H.R. 7777, “which provide for a streamlined application for loans up to $150,000 based on a single-paged attestation form.”
“With negotiations on a comprehensive COVID-19 relief package stalled, and with the clock ticking before Congress adjourns for an extended period, we urge you to take immediate administrative action on this issue,” the letter noted.
Fed Updates FAQs on Main Street Lending Program
The Federal Reserve Board has updated its frequently asked questions on the Main Street Lending Program to clarify expectations regarding lender underwriting. The revised FAQs emphasize that lender underwriting should look back to the borrower’s pre-pandemic condition and forward to their post-pandemic prospects. The FAQs also clarify supervisory expectations for program lenders.
Hearings This Week on Treasury, Fed Pandemic Response
Congress is in session this week. The House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee have hearings scheduled for today and Thursday, respectively, on the Department of the Treasury and Federal Reserve response to the coronavirus pandemic.
IBA COVID-19 Updates
The IBA has several COVID-19 resources and updates available at our website.