All loan applications received by March 31 deadline should be considered
Washington, D.C. (March 10, 2021) — The approaching Paycheck Protection Program expiration date should not leave small businesses or nonprofits stranded, the Independent Community Bankers of America (ICBA) today told Congress.
Testifying virtually during a House Small Business Committee hearing, Bank of Charles Town, W.Va., President and CEO Alice P. Frazier called on policymakers to ensure the Small Business Administration clears the thousands of loan applications on hold in the PPP system before the program expires on March 31.
"Under current law, any application not approved by March 31—even if it was submitted prior to that date—cannot receive Paycheck Protection Program funds," Frazier said. "With community banks providing more than 60 percent of PPP loans and saving an estimated 33.7 million jobs, we believe that any application submitted by March 31 should be eligible for approval and funding. No applicant should be left stranded because of bureaucratic red tape."
Frazier also urged Congress and SBA to make the following fixes to the PPP if lawmakers extend it beyond March 31:
- First-Draw Increase Eligibility: Allow borrowers with forgiven loans to apply for a loan increase.
- Second-Draw Eligibility: Allow those applying for a first draw in 2021 to apply for a second draw.
- Second-Draw Use of Proceeds: Establish a level of spending on ineligible expenses that would not disqualify borrowers from receiving a second loan.
- Farm Partnerships: Provide agricultural partnerships with equitable access to funding.
- Schedule C Borrowers: Allow Schedule C filers to apply for a loan increase under new SBA rules allowing them to use the gross income method.
- Save Our Stages Program: Allow live-action venues eligible for Save Our Stages grants to apply for PPP loans.
ICBA looks forward to continuing to work with Congress and the SBA to maximize the impact of the PPP on local communities.
About ICBA
The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.
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