Community banks were essential to the success of the Paycheck Protection Program by serving the smallest businesses outside the focus of larger banks, Federal Reserve Governor Michelle "Miki" Bowman said.
Speaking at the Community Banking in the 21st Century research conference, Bowman also cited ICBA data that community banks provided most PPP loans to minority-owned, women-owned, and veteran-owned small businesses.
Bowman cited a Cleveland Fed article on the role of minority depository institutions and noted that community banks have supported borrowers by reducing or eliminating penalties or fees and actively offering loan deferrals.
To preserve the success of the PPP, ICBA is calling on community bankers and small-business owners to urge congressional support for legislation simplifying PPP forgiveness.