WASHINGTON–A banking industry trade group has released a list of items it wants to see included in the next package of legislation in response to the coronavirus pandemic.
Separately, the group has also partnered with a dozen fintechs as part of an effort to enhance participation in the SBA’s Paycheck Protection Program.
According to the Independent Community Bankers of America, its recommendations would ensure a more flexible federal response to help small businesses and households recover from the economic impact of the emergency.
"These recommendations were developed in consultation with community bankers from across the country representing rural, suburban, and urban markets," ICBA President and CEO Rebeca Romero Rainey said in a statement. "These bankers have a critical stake in finding solutions that will help their communities survive the crisis and rebound strongly once restrictions are lifted."
Letter Makes Requests
In a letter to Congress, the ICBA is calling for:
- Paycheck Protection Program reforms to support more flexible spending by small-business borrowers and a straightforward approach to loan forgiveness.
- Bank capital and accounting relief related to COVID-19-related loan losses, the Current Expected Credit Losses accounting standard, the Community Bank Leverage Ratio, and more.
- Liability protection for businesses from COVID-19-related lawsuits.
- A tax exemption for interest on loans secured by agricultural real estate or primary residences in rural communities.
- Extending Fannie Mae and Freddie Mac's qualified mortgage "patch."
- Raising the limit on issuing bank-qualified bonds to expedite low-cost funding for local projects.
- Enhancing support for U.S. agriculture via increased financial assistance, support for USDA loan programs, and regulatory forbearance.
Fintech Partnership
Separately, the ICBA said it has partnered with AIR, the Alliance for Innovative Regulation, and The Venture Center, to offer 12 high-impact fintech solutions tailored to help community banks navigate the Paycheck Protection Program for their small business customers.
“Hundreds of bankers, regulators and investors joined the virtual event featuring solutions to address calculating, tracking reporting and loan forgiveness PPP requirements,” the ICBA said.