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For small business loan program, forgiveness may be the hardest part
May 1, 2020
Smoothing the forgiveness process is critical for the program to succeed, but a lack of government guidance on the related calculations and necessary documentation could land borrowers and banks alike with billions in unexpected debts.
Spokespeople for the Treasury and SBA did not respond to requests for comment, but the agencies are aware of the issues said David Pommerehn, general counsel of the Consumer Bankers Association.
"From a banking perspective, we are really acting as a middleman here. We don't want to carry these loans on our books," he said. "We see this as potentially a bigger mess than the funding process."