Newsroom
Senators call on SBA, Treasury to streamline PPP forgiveness application
Between a pair of letters Friday, almost all members of the Senate have called on Small Business Administration (SBA) Administrator Jovita Carranza and Treasury Secretary Steven Mnuchin to revise the SBA's paycheck protection (PPP) forgiveness application with improvements needed to streamline and simplify the process.
NAFCU last week sent a letter to the Senate Small Business Committee ahead of its hearing with Carranza and Mnuchin and raised support for automatic forgiveness of PPP loans under $150,000. NAFCU President and CEO Dan Berger further detailed how automatic forgiveness would benefit small businesses and credit unions that are recovering from the coronavirus pandemic with strained financial and human resources in a follow up letter to Carranza.
A bipartisan group of forty-four Senators signed onto a letter led by Sen. Mike Rounds, R-S.D., and Senate Banking Committee Chairman Mike Crapo, R-Idaho, and called for a one-page loan forgiveness application for loans under $250,000, instead of the 11-page forgiveness application that was recently released by the SBA.
"The Administration's intentions to scrutinize PPP loans above $2 million is an appropriate oversight of taxpayer resources," the lawmakers wrote. "Failing to streamline the loan forgiveness application for loans that are worth a mere fraction of that will not only leave millions of small business owners without the relief that they were promised by Congress, but it will also introduce a needless complication to our nation's economic recovery."
Senate Democrats' also united in a call for simplification of the forgiveness process in a letter – which was signed by all 47 members of the party's caucus – led by Senate Minority Leader Chuck Schumer, D-N.Y., Senate Small Business Committee Ranking Member Ben Cardin, D-Md., Senate Banking Committee Ranking Member Sherrod Brown, D-Ohio, and Sen. Jeanne Shaheen, D-N.H.
Citing feedback from a number of businesses and lenders, the Democratic lawmakers agreed with their counterparts that the current application is “tremendously cumbersome and overly complex, especially for very small businesses, sole proprietors, and underserved borrowers.”
In addition, the Democrats requested that the SBA release a final, updated form only after engaging directly with Congress for input to ensure that the form upholds the intent within the CARES Act and follows through on the senators' requests, which include:
- a process for streamlined forgiveness for smaller loans with an easy-to-use form;
- further guidance issued from the SBA to provide lenders with a reasonable safe harbor protection when certifications are made by borrowers in the forgiveness process for small dollar loan amounts;
- the development of a comprehensive suite of approved online tools and resources to help small businesses and nonprofits as they navigate the process; and
- a well-staffed help line for borrowers or lenders to easily reach someone to talk to if they face any challenges with the forgiveness forms or process.
NAFCU has consistently sought additional guidance from the SBA on the topic of PPP loan forgiveness and has shared ways to improve the program as the Senate considers Phase 4 relief provisions. The association will continue working closely with the SBA, Treasury, and Congress to ensure credit unions can lend effectively through the PPP.
Access NAFCU's PPP FAQs here; more information is also available on the SBA's and Treasury's websites.
Share This
Related Resources
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Resiliency In Your Incident Response Plan
Cybersecurity
preferred partner
DefenseStorm
Blog Post
Add to Calendar 2024-04-15 09:00:00 2024-04-15 09:00:00 Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs Listen On: Key Takeaways: [03:50] With the merger of a smaller credit union into a larger one you are really only dealing with integrating staff into the larger credit union. [05:53] When working with a merger of equals we start with a deep dive into the executive compensation and benefits of each organization. [09:09] If your current executive benefits provider doesn’t conduct regular plan evaluations, consider having a plan audit anyway. [13:46] Don’t overpay for these things if you don’t have to. When you have more options available that means the cost is more appropriate. [17:11] It is in a unified organization’s best interest to do tier timelines where we look at your top executives who are critical to the unified organization’s success today and then slowly add in the next levels. Web NAFCU digital@nafcu.org America/New_York public
Mergers and Acquisitions: Unifying Two Different Executive Total Compensation and Benefits Programs
preferred partner
Gallagher
Podcast
Add to Calendar 2024-04-11 14:00:00 2024-04-11 14:00:00 Regulation E: Impacts Across Your Institution Dive into regulatory excellence with, Regulation E: Impacts Across Your Institution. This webinar is tailored to empower you with the knowledge and strategies necessary to effectively implement the Electronic Funds Transfer Act (EFTA) and Regulation E within your operations. You’ll explore how to apply Regulation E across various business areas to ensure compliance obligations are met with precision. Key Takeaways Learn the basics of EFTA and Regulation E Understand how to apply Regulation E at your organization to detect processes and transactions that require Regulation E compliance Discover how Regulation E may apply to a large breath of areas in your institutions and functions for which you may rely on third-party vendors Review recent enforcement activity for non-compliance with EFTA and Regulation E Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 11, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Regulation E: Impacts Across Your Institution
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.