WASHINGTON–Treasury Secretary Steven Mnuchin told the Senate Banking Committee last week that he would contact the Small Business Administration on the same day he was testifying over how it might streamline the forgiveness process for Paycheck Protection program loans.
But for such changes to take place, Mnuchin indicated he believes additional legislation may be needed.
“We would support if there is legislation to have loans under $150,00 have a presumption but allow for us to audit them as needed,” Mnuchin told the committee.
The Treasury secretary added that borrowers with loans under $150,000 shouldn’t delay in filling out the existing EZ application, “but if we could get legislation that would help them, that would be great.”
“We believe we need additional legislation to simplify beyond what we’ve done. We want to maintain fraud protection,” Mnuchin said.
Trade Groups Press for Clarity
The statements come as trade associations, including both CUNA and NAFCU, have called on Congress and the SBA to provide greater clarity to both borrowers and lenders.
As CUToday.info reported, last week both Mnuchin and Federal Reserve Chairman Jerome Powell called on Congress to reauthorize the PPP so that the remaining $130 billion could be used to make additional loans to struggling small businesses. Both administration officials agreed that additional, targeted fiscal support would likely be needed to mitigate the effects of the coronavirus pandemic on individuals and businesses. Powell added that “our banks so far have really been a source of strength” through the crisis thus far.