search.noResults

search.searching

dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
Options Going Forward


While banks participating in the PPP are generally pleased with the changes that PPPFA brought to the program, the banking industry as a whole has a list of improvements it is advocating to the Treasury Department, SBA, and Congressional leaders.


The PPPFA lengthened loan terms from two to five years, but few borrowers are likely to hold onto loans that long, as most are expected to be forgiven, according to the SBA. A big problem, however, is the forgiveness process, which starts with an 11-page application. Bankers are pushing the Treasury and SBA to streamline the process. They’re also concerned about cases where borrowers under the original PPP can’t reach agreement with lenders on extending the original eight-week loan forgiveness window to the now mandatory 24-week coverage period. That could lead to two sets of loan forgiveness applications. The other concern bankers point out is the


new “cliff” provision in the PPPFA. Under the PPP, borrowers could get at least partial loan forgiveness if they couldn’t meet the 75 percent payroll expense requirement. When the PPPFA


had just passed, there was concern from some in the banking community that it would prohibit forgiveness for those who don’t meet the new 60 percent requirement. However, U.S. Treasury Secretary Steven Mnuchin later clarified that borrowers would still qualify for partial loan forgiveness even if they did not meet the 60 percent threshold.


The Consumer Bankers Association and Bank Policy Institute are lobbying for blanket forgiveness for loans of $150,000 or less, which the American Bankers Association (ABA) also supports, according to Executive Vice President for Congressional Relations James Ballentine. He says that threshold would cover about 80 percent of PPP loans. The Independent Community Bankers of America (ICBA) has proposed that companies borrowing $1 million or less should be presumed in compliance, eliminating the need for complicated forgiveness applications.


“Even though SBA did a good job of getting


the program organized to get money out quickly,” says IBA’s Ahrens, “PPP probably should have been made more like a grant program than a loan program.”


“We appreciate the Federal Reserve’s willingness to make additional changes to the Main Street Lending Program. By adjusting the loan terms, including lowering the minimum loan size, more creditworthy small and mid-sized businesses should be able to access this program and hopefully weather the economic challenges caused by COVID-19.”


— Rob Nichols ABA President and CEO Washington, D.C.


DREW O’QUINN VICE PRESIDENT THOMPSON & LITTLE


18 FEDA News & Views


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68