PPP complexity could limit effectiveness: GAO

The complexity and lack of guidance surrounding Paycheck Protection Program loan forgiveness could limit the effectiveness of future rounds of the program, the Government Accountability Office reported.

In its latest report on CARES Act programs, the GAO said lender associations have warned of lender fatigue over the application and forgiveness processes. It notes that complex forgiveness applications could take up to 15 hours for borrowers to complete and 75 hours for lenders to review.

In a statement, Senate Banking Committee member Kevin Cramer (R-N.D.) said the GAO report demonstrates the need to pass his ICBA-advocated bill to forgive PPP loans of $150,000 or less. ICBA initiated the effort to simplify PPP loan forgiveness, advocating a presumption of compliance for loans under $1 million since May.

ICBA continues calling on community bankers to urge lawmakers to include this and other common-sense policies in the next economic relief package.