A Push for Streamlined PPP Forgiveness; Judge Orders Loan Data Be Made Public Posted by AVCU on 8:27 AM

 As Congress prepares to return from a lame duck session, some 100 business groups again are calling for the House and Senate to enact a streamlined application process for loan forgiveness for many paycheck loans.

In a new letter to congressional leaders, the groups, including CUNA, NAFCU, the American Bankers Association and the Independent Community Bankers of America, called on the House and Senate to enact legislation that would forgive all Paycheck Protection Program loans of up to $150,000 based on a one-page application.

The legislation also would expand the hold harmless protections for lenders, allowing them to focus their energy on providing much-needed credit and financial services, as the coronavirus crisis continues, the groups said.

“Businesses have been patiently awaiting for Congress to act, hoping that an improved and streamlined forgiveness process will ensure they can focus their time, energy and resources back into their business and communities instead of allocating significant time and expense into completing complex forgiveness forms,” the groups said.

In related PPP news, U.S. District Judge James Boasberg on Tuesday ordered the Small Business Administration to make public by Dec. 1 all names, addresses and precise loan amounts for businesses that received PPP loans or assistance under the Emergency Injury Disaster Loan program.

Several news organizations filed suit seeking that information after the SBA denied their requests under the Freedom of Information Act.

On Nov. 5, Boasberg ordered the data be made public by Nov. 19, but the SBA requested a stay in the order until Dec. 7 or until the agency filed an appeal.

In his ruling, Boasberg said the Dec. 1 deadline will give the Trump Administration enough time to decide whether to appeal his ruling.

Boasberg said the SBA’s decision harms the public’s ability to evaluate the program.

“That stands as an obvious impediment to any meaningful public inquiry regarding the overwhelming majority of loans, including whether certain types of businesses were over- or under-represented and whether the loans were distributed to qualifying recipients along equitable racial, gender and geographic lines,” he said.

He added that the agency’s lending programs remain a public concern because at “this very moment, congressional leaders and executive-branch officials are considering potential renewed stimulus packages, with the possibility of a new round of business loans.”