ICBA and 43 state banking associations wrote to Congress seeking more workable forgiveness loan terms under the Small Business Administration’s Paycheck Protection Program.
In a separate letter to congressional leaders Wednesday, ICBA called the program’s forgiveness rules and procedures “far too complex and onerous,” and said the U.S. Treasury’s long-awaited guidance was “a source of disappointment and frustration” that presented “a new source of liability risk for community bankers who have acted in good faith.” Among its recommendations, the banking coalition requested:
- More flexible spending to preserve small business viability and employment, authorizing borrowers to spend up to 50 percent of loan proceeds on allowable, non-payroll expenses and extending the current 8-week period for spending PPP funds.
- Easy-to-use forms and procedures for PPP forgiveness, including a presumption of compliance for loans of $1 million or less, and a PPP loan forgiveness calculator to help determine forgiven debt.
- Preserving business operating expense deductions for PPP borrowers that obtain loan forgiveness.
ICBA encourages community banks to use its Be Heard grassroots action center and tell lawmakers to make these necessary changes to ensure the program reaches as many small businesses and employees as possible.
