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NAFCU, trades call on Congress to address mounting PPP loan holds issue
NAFCU Friday joined with several financial services trade organizations on a letter to House Small Business Committee and Senate Small Business Committee leadership, urging members to ensure the Small Business Administration (SBA) makes every effort to clear the thousands of loan holds currently in the paycheck protection program (PPP).
Additionally, the group asked that all outstanding PPP loan applications that are submitted through the platform by March 31 – the programs current end date – are reviewed and processed, ensuring that all eligible small businesses currently held up by loan holds or process delays are able to receive much needed funding.
“Since its inception the PPP has served a vital role in helping millions of small businesses survive,” wrote the group in the letter. “As this program reaches its current congressionally authorized sunset date, thousands of our nation’s small businesses have filed or intend to file applications for this critical economic lifeline.
“They should be given the opportunity to receive these funds through the full program authorization period,” the group concluded.
The SBA is currently only processing PPP applications for small businesses with fewer than 20 employees through March 9 as part of the Biden administration's efforts to promote equitable access to capital.
NAFCU will continue to advocate for program improvements and transparent guidance to ensure credit unions can lend effectively through the PPP. Stay tuned to NAFCU Today for the latest on the program from the SBA, Treasury and the administration. Access the association's recently updated PPP FAQs here.