WASHINGTON–President Trump has signed a bill that would extend the deadline for applying for Paycheck Protection Program (PPP) loans, a move that drew support from both credit union trade associations.
The bill, introduced by Senate Small Business Committee Ranking Member Sen. Ben Cardin (D-MD), extends the deadline for applying for PPP loans to Aug. 8. Though the PPP still has approximately $130 billion in unspent funds, the program expired June 30 at midnight.
While the extension earned praise, CUNA said it continues to push Congress, the Treasury and Small Business Association over other concerns related to the program, including on the need for guidance on several matters and lender liability protection.
Banks Offer Support
The nation’s banks have also announced support for the initiative:
"As the nation's top small-business lenders and leading Paycheck Protection Program participants, community banks will continue working to meet the needs of their customers and local communities,” said Rebeca Romero Rainey, president of the Independent Community Bankers of America. "Community banks have been an economic lifeline to local communities during the COVID-19 pandemic, including through their participation in the Paycheck Protection Program. Combined, they account for more than 66% of PPP loans and 63% of the program's approved dollar amount, according to SBA data.
"While community banks will continue supporting their local economies, we are also advocating additional reforms to include in the next COVID-19 relief bill to support small businesses and jobs in rural, suburban, and urban markets,” Romero Rainey continued. “In addition to a more straightforward approach to PPP loan forgiveness, ICBA and community bankers also encourage Congress to advance capital and accounting relief, liability protection, tax reform, agricultural support, and more.”