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HARRISBURG, Pa., (June 19, 2020) — During a meeting today with US Small Business Administrator Jovita Carranza, community bankers from the Pennsylvania Association of Community Bankers (PACB) praised the historic efforts by Congress and the Trump administration to infuse billions of dollars into the economy to save small businesses through the Paycheck Protection Program (PPP). But they urged SBA officials to simplify the process further to help more small-business borrowers. “The US Treasury and the SBA worked at an historic pace to deliver billions of dollars in much needed relief to small businesses in Pennsylvania and across the nation,” said PACB chair-elect Lori A. Cestra, Chief Operating Office for Enterprise Bank in Allison Park. “But these small firms should not be forced to spend precious resources to hire accountants or other financial professionals to help them complete the paperwork needed to forgive these loans.” PACB president and CEO Kevin L. Shivers noted that community banks thus far have delivered the lion’s share of paycheck protection loans across the nation. “These PPP loans quite literally offered a lifeline for thousands of small businesses and prevented communities all over Pennsylvania from certain economic hardship,” said Shivers. “Here in Pennsylvania, this includes more than 158,000 small businesses. Loans made to Pennsylvania businesses have averaged just over $112,000, indicating they did reach the smallest of businesses across our state, as was intended by Congress, the Treasury Department and the Small Business Administration (SBA). “I have talked to many of our state’s financial institutions that made loans as small as a few thousand dollars. These bankers are concerned for the viability of their small business customers. They know that many businesses do not have the time or sophistication to follow the process as it has been prescribed.” Shivers noted a recent survey by the National Federation of Independent Business revealed that nearly 75 percent of small businesses reported confusion over the terms of their PPP loan. The forgiveness process, as currently defined, provide only some clarity or simplicity to these borrowers. “As Congress and the administration continue the push for various fixes for the PPP, simplification of the forgiveness process for most borrowers must be top priority. The PACB is also working closely with the Independent Community Bankers of America (ICBA) to extend to borrowers with PPP loan amounts of less than $1 million a highly simplified loan forgiveness process,” Shivers concluded. About the Pennsylvania Association of Community Bankers The Pennsylvania Association of Community Bankers, headquartered in Harrisburg, Dauphin County, exclusively represents the interests of community banks chartered in the Commonwealth and nearly 14,000 men and women who work in their communities to make the financial dreams of their neighbors become reality. Its mission is focused to promote and protect the community banking industry through legislative advocacy, education and networking. To learn more, please visit www.pacb.org ###
HARRISBURG, Pa., (June 19, 2020) — During a meeting today with US Small Business Administrator Jovita Carranza, community bankers from the Pennsylvania Association of Community Bankers (PACB) praised the historic efforts by Congress and the Trump administration to infuse billions of dollars into the economy to save small businesses through the Paycheck Protection Program (PPP). But they urged SBA officials to simplify the process further to help more small-business borrowers.
“The US Treasury and the SBA worked at an historic pace to deliver billions of dollars in much needed relief to small businesses in Pennsylvania and across the nation,” said PACB chair-elect Lori A. Cestra, Chief Operating Office for Enterprise Bank in Allison Park. “But these small firms should not be forced to spend precious resources to hire accountants or other financial professionals to help them complete the paperwork needed to forgive these loans.”
PACB president and CEO Kevin L. Shivers noted that community banks thus far have delivered the lion’s share of paycheck protection loans across the nation.
“These PPP loans quite literally offered a lifeline for thousands of small businesses and prevented communities all over Pennsylvania from certain economic hardship,” said Shivers. “Here in Pennsylvania, this includes more than 158,000 small businesses. Loans made to Pennsylvania businesses have averaged just over $112,000, indicating they did reach the smallest of businesses across our state, as was intended by Congress, the Treasury Department and the Small Business Administration (SBA).
“I have talked to many of our state’s financial institutions that made loans as small as a few thousand dollars. These bankers are concerned for the viability of their small business customers. They know that many businesses do not have the time or sophistication to follow the process as it has been prescribed.”
Shivers noted a recent survey by the National Federation of Independent Business revealed that nearly 75 percent of small businesses reported confusion over the terms of their PPP loan. The forgiveness process, as currently defined, provide only some clarity or simplicity to these borrowers.
“As Congress and the administration continue the push for various fixes for the PPP, simplification of the forgiveness process for most borrowers must be top priority. The PACB is also working closely with the Independent Community Bankers of America (ICBA) to extend to borrowers with PPP loan amounts of less than $1 million a highly simplified loan forgiveness process,” Shivers concluded.
About the Pennsylvania Association of Community Bankers The Pennsylvania Association of Community Bankers, headquartered in Harrisburg, Dauphin County, exclusively represents the interests of community banks chartered in the Commonwealth and nearly 14,000 men and women who work in their communities to make the financial dreams of their neighbors become reality. Its mission is focused to promote and protect the community banking industry through legislative advocacy, education and networking. To learn more, please visit www.pacb.org ###