CBA Statement on PPP Report

October 16, 2020

CBA Statement on PPP Report


WASHINGTON – Consumer Bankers Association President and CEO Richard Hunt issued the following statement after the House Select Subcommittee on the Coronavirus Crisis majority issued its report on the Administration’s implementation of the Paycheck Protection Program:


“America’s financial institutions invested heavily in implementing the Paycheck Protection Program to help save mom-and-pop small businesses in every state and community across the country. The average loan size was approximately $100,000 and the average loan size for some of the nation’s largest banks was even lower, proving banks were able to reach those businesses most in need.


“The Members of Congress drafting this report are highlighting the issues directly related to the way they structured the program and banks raised with them and SBA during the breakneck implementation.


“At the end of the day, the goal was to get assistance to as many small businesses and their employees as quickly as possible and the thousands of bankers working around the clock to make decades worth of loans in a matter of months are proud of the work they did and continue to do to help customers and support small businesses during this pandemic.”


NOTE: The report mentioned three specific aspects of the program’s implementation, all issues banks have previously raised during the PPP process, which are addressed below:

  1. Banks through their trade groups repeatedly asked for Bank Secrecy Act waivers for PPP implementation to allow banks to more quickly help all small businesses, not just those where BSA checks had already been conducted through the course of normal business operations. Treasury, the Small Business Administration and Congress refused those requests. Lessening this burden for PPP loans would have helped banks serve customers they did not have pre-existing relationships with.
  2. In the lead up to the program’s implementation and even now, the financial services industry requested additional clarity around key aspects of the program. SBA also locked out the largest PPP lenders in the middle of the program, putting all businesses, including women and minority owned businesses, using those institutions from accessing the program.
  3. The accusation banks processed loans for larger companies faster is a direct result of the program guidelines issued by Congress. To complete PPP applications, small businesses had to collect and calculate payroll, utility, mortgage, benefits and other complex payroll data. Larger businesses have dedicated staff and expensive automated payroll systems, giving them the ability to gather loan paperwork much faster than smaller businesses. For small businesses, banks often had to go back for subsequent information which slowed the processing time.



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.