ICBA urges Payment Protection Program changes amid flawed launch
Following the flawed launch of the Paycheck Protection Program, ICBA this weekend urged the Treasury Department and SBA to update the program so every community bank can access the system.
“Nearly 48 hours after the Program went live, hundreds of lenders are still trying to get approval to access the SBA system so they can process loans,” ICBA President and CEO Rebeca Romero Rainey wrote in a letter to the agencies.
In its letter, ICBA called on policymakers to:
- Support and enhance the overburdened SBA systems.
- Increase program funds beyond the $349 billion appropriated.
- Allocate at least 25 percent of existing and future program funds for banks with $50 billion or less in assets.
- Launch a secondary market facility with the Federal Reserve to purchase program loans from originating institutions.
ICBA has worked tirelessly through the weekend to address the problems community banks have encountered in attempting to access the PPP, which Romero Rainey laid out in a new Main Street Matters post. "In my opinion, one community bank left out is one too many," she wrote.
ICBA will continue working with policymakers to implement these recommendations to address the PPP's failed technology links and portals and ensure access for community banks.