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HARRISBURG (August 7, 2020) – The Pennsylvania Association of Community Bankers (PACB) asked its Congressional delegation to renew the Paycheck Protection Program (PPP) and support proposed improvements, including simpler rules to ensure most of the loans are easily forgiven. The PACB represents local hometown bankers across the Commonwealth. Community banks in Pennsylvania and across the nation processed the vast majority of PPP loans for small business. Set to expire this Saturday August 8, the Association noted the importance of making quick revisions to the PPP program which will simplify applications and approvals, add more flexibility for borrowers and allow small businesses to qualify for larger loans. The revised legislation, "The Paycheck Protection Small Business Forgiveness Act," (S. 4117) advanced by Sens. Kevin Cramer and Bob Menendez, currently has broad bipartisan support, to provide needed PPP forgiveness simplification and a safe harbor. Rep. Chrissy Houlahan (PA-6) has also introduced similar legislation (H.R. 7777) in the US House. The Association’s letter, which thanked legislators for their previous support of the initial PPP, was addressed to U.S. Senator Pat Toomey, Rep. Madeleine Dean, Sen. Robert Casey, Jr. and Rep. Glenn Thompson. Copies were delivered to all members of the Pennsylvania Congressional delegation. With program ‘fixes’ needed before Saturday’s deadline, PACB pointed out that local community banks made thousands of PPP loans on an expedited basis because they recognized the urgent need of their local businesses. "Community banks have processed the lion’s share of paycheck protection loans, which quite literally offered a lifeline for thousands of small businesses," wrote PACB President and CEO Kevin Shivers. "To date, more than 158,000 small businesses in Pennsylvania are able to keep their doors open and employees on payroll thanks to loans received under the PPP. And 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." Shivers noted local institutions acted in good faith in complying with SBA guidance which changed regularly and often was ambiguous. He urged the congressional delegation to support a safe harbor in the proposed legislation to protect lenders that relied in good faith on borrower certifications and documentation. PACB said it supports the revised proposal, which also provides for expansion of allowable and forgivable expenditures for program funds. Small-business PPP borrowers have faced many new expenses since the program was launched in April, including costs related to transitioning to virtual environment, property damage from public disturbances, costs related to ensuring the safety of workers and customers, and other expenditures. # # # Founded in 1992, the PACB promotes and protects the community banking industry in Pennsylvania and the men and women who work every day to help make the financial dreams of residents in their communities become reality.
HARRISBURG (August 7, 2020) – The Pennsylvania Association of Community Bankers (PACB) asked its Congressional delegation to renew the Paycheck Protection Program (PPP) and support proposed improvements, including simpler rules to ensure most of the loans are easily forgiven. The PACB represents local hometown bankers across the Commonwealth. Community banks in Pennsylvania and across the nation processed the vast majority of PPP loans for small business.
Set to expire this Saturday August 8, the Association noted the importance of making quick revisions to the PPP program which will simplify applications and approvals, add more flexibility for borrowers and allow small businesses to qualify for larger loans.
The revised legislation, "The Paycheck Protection Small Business Forgiveness Act," (S. 4117) advanced by Sens. Kevin Cramer and Bob Menendez, currently has broad bipartisan support, to provide needed PPP forgiveness simplification and a safe harbor. Rep. Chrissy Houlahan (PA-6) has also introduced similar legislation (H.R. 7777) in the US House.
The Association’s letter, which thanked legislators for their previous support of the initial PPP, was addressed to U.S. Senator Pat Toomey, Rep. Madeleine Dean, Sen. Robert Casey, Jr. and Rep. Glenn Thompson. Copies were delivered to all members of the Pennsylvania Congressional delegation.
With program ‘fixes’ needed before Saturday’s deadline, PACB pointed out that local community banks made thousands of PPP loans on an expedited basis because they recognized the urgent need of their local businesses.
"Community banks have processed the lion’s share of paycheck protection loans, which quite literally offered a lifeline for thousands of small businesses," wrote PACB President and CEO Kevin Shivers. "To date, more than 158,000 small businesses in Pennsylvania are able to keep their doors open and employees on payroll thanks to loans received under the PPP. And 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."
Shivers noted local institutions acted in good faith in complying with SBA guidance which changed regularly and often was ambiguous. He urged the congressional delegation to support a safe harbor in the proposed legislation to protect lenders that relied in good faith on borrower certifications and documentation.
PACB said it supports the revised proposal, which also provides for expansion of allowable and forgivable expenditures for program funds. Small-business PPP borrowers have faced many new expenses since the program was launched in April, including costs related to transitioning to virtual environment, property damage from public disturbances, costs related to ensuring the safety of workers and customers, and other expenditures.
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Founded in 1992, the PACB promotes and protects the community banking industry in Pennsylvania and the men and women who work every day to help make the financial dreams of residents in their communities become reality.