WASHINGTON–The Independent Community Bankers of America (ICBA) has added its voice to those urging 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, the ICBA argued 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."
List of Requests
Noting that lenders under $50 billion account for more than 65% of approved loans and more than 63% of the approved dollar amount through two rounds of the PPP, ICBA is calling 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