Community Banks Will Continue to Lead Lending Effort
Washington, D.C. (March 30, 2021) — The Independent Community Bankers of America (ICBA) today thanked President Joe Biden for signing into law ICBA-advocated legislation to extend the Paycheck Protection Program (PPP) ahead of its March 31 expiration.
Previously, any PPP application not approved by March 31—even if it was submitted prior to that date—could not receive PPP funds. The new law signed today allows borrowers to apply for loans through May 31 and gives the SBA until June 30 to consider applications.
"ICBA thanks Congress and President Biden for quickly finalizing this much-needed extension of the Paycheck Protection Program to ensure small-business and nonprofit applicants are not stranded by an abrupt shutdown," ICBA President and CEO Rebeca Romero Rainey said. "With community banks providing more than 60 percent of PPP loans and saving an estimated 33.7 million jobs, we have strongly advocated ensuring every potential borrower that needs a loan gets one."
With the PPP extended, ICBA continues urging Congress and SBA to make the following program fixes:
- First-Draw Increase Eligibility: Allow borrowers with forgiven loans to apply for a loan increase.
- Second-Draw Eligibility: Allow those applying for a first draw in 2021 to apply for a second draw.
- Second-Draw Use of Proceeds: Establish a level of spending on ineligible expenses that would not disqualify borrowers from receiving a second loan.
- Farm Partnerships: Provide agricultural partnerships with equitable access to funding.
- Schedule C Borrowers: Allow Schedule C filers to apply for a loan increase under new SBA rules allowing them to use the gross income method.
About ICBA
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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