CONTACT: Barbara Hagenbaugh
Extending program will give time to clear review backlog and to assist all small businesses in need of critical support
Washington, D.C. – Financial Services Forum President and CEO Kevin Fromer issued the following today as lawmakers begin consideration of measures to extend the Paycheck Protection Program past the current March 31 deadline:
“The nation’s largest banks support efforts on Capitol Hill to extend the Paycheck Protection Program. An extension will give thousands of small business owners and banks time to address issues on outstanding applications with the government and to fully implement changes to the program made by the administration earlier this month. Members of the Financial Services Forum stand in strong support of the nation’s small businesses and look forward to continued service to this vital part of our economy.”
The Paycheck Protection Program is a government program that was first created by Congress last year during the CARES Act to provide fully forgivable loans to small business owners. The 2021 PPP is slated to end on March 31, 2021.
Thousands of applications from small businesses that have been submitted have yet to be approved by the Small Business Administration, which administers the program. These applications have “holds” due to technical issues that require a significant amount of time by small businesses and banks to clear with the SBA.
Further, earlier this month, the administration amended policies related to sole proprietors and independent contractors. While welcome, changes made in the middle of the application process take time and requires more time to fully implement.
Members of the Financial Services Forum have been strong partners of the PPP program, facilitating $69 billion in loans to 848,696 small businesses in 2020. More than one-third of those loans were made to businesses in communities in which the majority of the people are minorities and 91 percent of the PPP loans by Forum members last year were made to businesses with 20 or fewer employees. In addition, Forum members have extended significant support to Community Development Financial Institutions to support their PPP lending in traditionally underserved communities.
To learn more about Forum member work on PPP and other efforts to support the economy during the pandemic, go to fsforum.com/coronavirus-response/.
The Financial Services Forum is an economic policy and advocacy organization whose members are the chief executive officers of the eight largest and most diversified financial institutions headquartered in the United States. Forum member institutions are a leading source of lending and investment in the United States and serve millions of consumers, businesses, investors, and communities throughout the country. The Forum promotes policies that support savings and investment, deep and liquid capital markets, a competitive global marketplace, and a sound financial system.
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