WASHINGTON–The Independent Community Bankers of America (ICBA) has sent a list of recommendations to Congress on what should be included in the next legislative stimulus package to support local communities during the coronavirus pandemic.
"ICBA and the nation's community banks encourage Congress to include in the next COVID-19 relief bill provisions that will directly support local economies, starting with needed reforms to the current Paycheck Protection Program," said ICBA President and CEO Rebeca Romero Rainey. "Community banks have been an economic lifeline to local communities and continue to seek solutions that will have a meaningful impact on small businesses and jobs in rural, suburban, and urban markets."
The Recommendations
In its letter to congressional leaders, ICBA recommended:
- Paycheck Protection Program reforms providing 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 rural lending and expanded Employee Retention Tax Credit
- 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