Senate Republicans released initial proposals for the next round of stimulus legislation that include several ICBA-advocated provisions, though ICBA will continue working with lawmakers to craft the legislation.
The HEALS Act includes ICBA-advocated Paycheck Protection Program reforms, including safe harbor protection for PPP lenders, automatic forgiveness for loans under $150,000 with borrower attestation, and a streamlined forgiveness process for loans between $150,000 and $2 million. ICBA has initiated and led the effort to simplify PPP loan forgiveness, advocating a presumption of compliance for all loans of $1 million or less since May.
The legislative package—introduced by several Senate committee chairs—also includes ICBA-advocated measures providing liability protections from COVID-19-related lawsuits, agriculture support, and more. It also would provide a second round of direct checks for Economic Impact Payments, extend unemployment compensation, and expand the employee retention tax credit.
The PPP provisions introduced by Sens. Marco Rubio (R-Fla.) and Susan Collins (R-Maine) also would let certain small businesses apply for a second round of PPP loans. The SBA could reimburse lenders for 3 percent of the principal amount up to $350,000 and 1 percent of the principal thereafter.
Small businesses with no more than 300 employees that can demonstrate a 50 percent reduction in revenue would be eligible for the second PPP round, which would draw on a combined $190 billion in existing and newly appropriated funds.
The plan also includes a 7(a) loan program that would provide for 20-year loans up to $10 million at a rate of 1 percent to borrowers and 300 basis points over SOFR to lenders, or roughly 3.1 percent. The SBA would guarantee 100 percent of the loans and would be required to reduce barriers to selling the loans on the secondary market.
As the congressional debate continues, ICBA will continue reviewing the legislative proposals and working with lawmakers to ensure the next stimulus meets the needs of community banks and the communities they serve.
Meanwhile, ICBA continues urging community bankers to use its Be Heard grassroots action center to urge Congress to advance ICBA's specific recommendations in the next stimulus package.
