CBA Asks Treasury, SBA for Urgent PPP Guidance

April 15, 2020
Nick Simpson

CBA Asks Treasury, SBA for Urgent PPP Guidance

Requests include queuing of loans with SBA, Additional PPP funding

 

WASHINGTON – The Consumer Bankers Association today requested the Department of Treasury and the Small Business Administration provide additional guidance on key aspects of the Paycheck Protection Program as well as reiterating the request for Congress to authorize additional funds for the program. A key request in the letter is to allow bankers to continue entering applications into the SBA’s E-TRAN processing system so when Congress approves additional funding, applications will be ready to go and not face the system backlog many have experienced over the last two weeks.

 

“The PPP has been welcomed by small businesses across the country and considered a lifeline for the millions of men and women who work at them. These businesses and their employees now face immediate economic threats related to the COVID-19 pandemic and implementation of the program must not be interrupted.  Bankers across the country have worked tirelessly to implement the new program, that is less than two weeks old, having been inundated by high volumes of loan applications from small business owners,” CBA President and CEO Richard Hunt wrote in the letter.

 

“We believe the below issues demand immediate attention to ensure the PPP works as efficiently as possible, allowing banks to provide this critical funding.”

 

Among the requests, CBA called on Treasury and SBA to:

  • Encourage Congress to immediately approve $250 billion in additional funding for all lenders, to ensure there will not be a break in service to small businesses;
  • Grant lenders the ability to continue to process PPP applications in E-TRAN to create a queue of pending loan applications, allowing for quicker funding of PPP loans to small businesses when Congress approves additional funding;
  • Provide immediate parameters and guidance for the forgiveness piece before the 8-week period provided for in the CARES Act comes to an end; and
  • Allow a grace period for disbursing funds, given the backlog with the SBA E-TRAN system and late guidance on key PPP loan terms.

 

CBA’s letter is available here.

 

###

 

 

About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.