ICBA Urges Streamlined Paycheck Protection Program Process

The Independent Community Bankers of America® (ICBA) called on the Treasury Department and Small Business Administration to make the Paycheck Protection Program loan-forgiveness process less complex and onerous for borrowers and lenders.

In a letter to the agencies, ICBA said an unnecessarily complex forgiveness process compromises the PPP's potential to facilitate a strong economic and jobs recovery.
"Borrowers should not have to hire accountants at expensive fees to assist with loan forgiveness," ICBA President and CEO Rebeca Romero Rainey wrote. "What’s more, borrowers whose first language is not English are struggling with the complex forgiveness forms and procedures and would greatly benefit from simplification."
With lenders under $50 billion accounting for more than 65 percent of approved loans and more than 63 percent of the approved dollar amount through two rounds of the PPP, ICBA called for:

• A shorter and simpler application form akin to the IRS Form 1040EZ.
• An online PPP loan-forgiveness calculator for borrowers and lenders.
• A forgiveness presumption of compliance for borrower-certified loans of $1 million or less.
• SBA to purchase residual PPP loans at par to support additional lending.
• Preserving the tax deduction for business expenses for PPP borrowers.