Washington, D.C. (Oct. 9, 2020) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Small Business Administration's simpler loan forgiveness application for some Paycheck Protection Program loans.
"ICBA and the nation's community banks are pleased that the Small Business Administration and Treasury Department have simplified the loan forgiveness application for Paycheck Protection Program loans of $50,000 or less, but more relief is needed to support the nation's small businesses.
"To ensure small businesses and community banks can focus their resources on the economic recovery, Congress should immediately pass legislation to simplify forgiveness for loans of $150,000 or less. The broadly supported, bipartisan, bicameral Paycheck Protection Small Business Forgiveness Act (H.R. 7777/S. 4117) would relieve small businesses of reporting burdens and preserve the intent of the program to sustain employment amid pandemic-related shutdowns.
"Community banks were the predominant lenders under the PPP and have urged lawmakers to simplify PPP loan forgiveness for months because it has been a source of significant confusion and burden for borrowers. In fact, the Government Accountability Office recently reported that the complex forgiveness applications could take up to 15 hours for borrowers to complete and 75 hours for lenders to review.
"While the complexity of the loan-forgiveness process threatens to undermine the PPP, ICBA looks forward to continuing to work with Congress and the Trump administration to quickly bring this critical legislation to a vote to support small businesses and the economic recovery."
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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The SBA and Treasury Department released a simpler loan forgiveness application for Paycheck Protection Program loans of $50,000 or less to provide needed relief to lenders and borrowers.
ICBA continues urging community bankers to call their members of Congress and enlist the support of small-business contacts on behalf of PPP forgiveness legislation.