The staff of the Democratic-controlled House Select Subcommittee on the Coronavirus Crisis reports that in the first round of Payroll Protection Program lending, Community Development Financial Institutions and Minority Depository Institutions were largely excluded.
A simplified Paycheck Protection Program loan forgiveness application has been rolled out for businesses that borrowed $50,000 or less. New legislation would be required for what CUNA and NAFCU want, which is automatic loan forgiveness for loans under $150,000.
Jason Crow, chairman of the House Innovation and Workforce Development Subcommittee, complains of technology-related issues with Paycheck Protection Program loan processing which he believed could have been prevented if the Small Business Administration had properly responded to a Government Accountability Office report from 2014.
According to the Government Accountability Office, the Paycheck Protection Program’s loan forgiveness process remains unclear and incomplete and is resulting in lender fatigue.
The Consumer Financial Protection Bureau would not exempt credit unions from the requirement to report lending to women-owned businesses, minority-owned businesses, and small businesses to the agency, according to an initial proposal being circulated by the bureau.
Credit union trade groups have sought a blanket exemption from the reporting required under the Dodd-Frank Act.
Credit union trade groups are renewing their call for Congress to lift the credit union Member Business Lending cap, saying the limit is an arbitrary restriction that keeps financial institutions from providing crucial assistance during the coronavirus economic crisis.
The Democratic staff of the House Coronavirus Crisis Subcommittee issued a report on the Paycheck Protection Program. The report says the PPP has been plagued by waste and fraud and that both lenders and a lack of oversight from the Small Business Administration and the Treasury Department are to blame.
Credit unions and their members should rely on the Small Business Administration for information about loan forgiveness in the Paycheck Protection Program and ignore what they are reading on social media, David Hincapie, an SBA economic development specialist told community development credit union officials Tuesday.
Borrowers—not financial institutions—are responsible for accurately calculating their payroll costs as they apply for loan forgiveness under the Paycheck Protection Program, the Small Business Administration said this week.
In a blistering report, the Small Business Administration’s Inspector General said Tuesday that the agency’s COVID-19 Economic Injury Disaster Loan program is an open door for fraudsters seeking easy money.