Lenders call on SBA to act on PPP loans
A coalition of lenders expressed concern in a letter to lawmakers that thousands of Paycheck Protection Program loans are being held up within the Small Business Administration’s approval system, potentially shutting out applicants from the program as the PPP deadline of March 31 approaches. The American Bankers Association, the Credit Union National Association and the Independent Community Bankers of America were among the groups to submit the letter to the House and Senate small business committees.
Loan applications have been delayed because of a tightened set of automated checks by the SBA. Phil Kryder, first vice president of special projects at Fishers, Indiana-based First Internet Bank, told The Business Journals the intention to cut down on fraud was a good one but that it has created a huge problem of trying to get loans that should not have been delayed through the system. Industry groups have been expressing concerns since early February.
Through Sunday, the SBA had approved more than 2.4 million loans for a total of about $165 billion since the restart of the PPP in January.
Also: The government contracting community is applauding an amendment in the $1.9 trillion American Rescue Plan Act stimulus legislation that will extend through Sept. 30 a rule that helps cover contract workers affected by the pandemic. The provision allows federal agencies to modify contract terms so contractors can request reimbursement of labor costs for workers who were unable to access federal facilities during the pandemic. That’s important for many contractors, particularly in the intelligence space, because it effectively has saved companies from either having to lay off highly skilled workers because of lack of facility access or going out of business trying to pay them.