WASHINGTON—As Congress continues negotiations on a Phase 4 coronavirus relief package, CUNA and NAFCU joined with other financial services trade organizations to urge Congress to support small businesses and pass legislation that would continue the Paycheck Protection Program (PPP) and simplify the forgiveness process for PPP loans.
In the letter, sent to House and Senate leadership, the trade associations noted an impending slowdown to the economic recovery without congressional intervention.
"At the heart of our recovery is the ability for small businesses, which employ tens of millions of people, to pay their employees and maintain their monthly expenses," wrote the group. "The PPP provided over five-million small businesses the financial lifeline they desperately needed to weather the start of the pandemic and the economic shutdown that followed.
"As these businesses continue to recover, they will need additional resources to maintain business operations, and the PPP remains the most efficient and effective means to assist them through this challenging period," they added.
Simplified Forgiveness Sought
The groups are also advocating for a simplified loan forgiveness process, voicing their support for the Paycheck Protection Small Business Forgiveness Act, S. 4117, and the House companion, H.R. 7777 – bipartisan legislation that would provide an automatic forgiveness process for covered PPP loans of less than $150,000.
Other groups signing the letter: the American Bankers Association, Bank Policy Institute, Community Development Bankers Association, Consumer Bankers Association, Financial Services Forum, Independent Community Bankers of America, Mid-Sized Bank Coalition of America, and the National Bankers Association.