WASHINGTON–The Independent Community Bankers of America (ICBA) is urging the Senate to incorporate needed reforms in the next round of stimulus legislation.
The ICBA cited SBA data it said demonstrates the overwhelming effectiveness of community banks in serving underrepresented small businesses via the Paycheck Protection Program. According to the ICBA, community banks delivered the most PPP loans to:
- Minority-owned small businesses (72.6%)
- Women-owned small businesses (71.5%)
- Veteran-owned small businesses (63.4%)
Further, the ICBA said community banks served 98.2% of low-income or economically distressed counties, 96.6% of rural counties, and 92.4% of urban counties “while processing PPP loans five to 10 days faster than other lenders.”
‘Heed the Recommendations’
"As the Senate debates the next stimulus package, lawmakers should heed the recommendations of the nation's community banks, which account for more than two-thirds of Paycheck Protection Program loans to small businesses," ICBA President and CEO Rebeca Romero Rainey said in a statement. "In the face of ongoing economic challenges, community banks are calling on Congress to advance specific policies that will have a meaningful impact on small businesses and jobs in local communities across America."
Like the credit union trade groups, the ICBA is calling on Congress to advance provisions in the Senate stimulus draft proposal to provide an intermediate forgiveness process for PPP loans under $2 million and streamlined forgiveness for loans under $150,000.