Legislative Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer
7/1/2020

Good Morning!

 

I hope everyone is having a great week. With the 4th of July just a few days away, fireworks are already popping and crackling at a steady pace. However, we won’t see any fireworks from Congress in the near future with the Senate beginning its two week in-district work period and the House temporarily suspending votes in favor of committee work. I wish you all a safe and relaxing 4th of July holiday, but before our vacation begins, I do have a few legislative developments to share.

 

Senator Cramer introduces the Paycheck Protection Small Business Forgiveness Act.

 

In Monday’s President’s Perspective, Jeff Olson mentioned the introduction of a prospective bill Congress was considering that would grant automatic forgiveness for PPP loans under a certain de minimis threshold after completing a simple one-page attestation, acknowledging that the eligible recipient complied with all SBA PPP requirements. The legislation would require the SBA to establish the attestation form no later than 7 days after the bill is signed into law.

 

Along with Senator Cramer (R-ND), the bipartisan Paycheck Protection Small Business Forgiveness Act was officially introduced yesterday, June 30th, by U.S. Senators Bob Menendez (D-NJ), Thom Tillis (R-NC) and Kyrsten Sinema (D-AZ), Senate Banking Committee members. We appreciate and thank Senator Cramer for his support and leadership to help simplify the forgiveness process for both borrowers and lenders.

 

As Jeff earlier reported, the bill would:

 

  • Provide forgiveness for covered PPP loans of less than $150,000, if the borrower submits a simple, one-page attestation form to the lender.
  • The lender shall be held harmless from any enforcement action if the borrower’s attestation contained any falsehoods.
  • The borrower attestation will include a means by which a borrower, on a voluntary basis, will provide the following demographic information: sex; race; ethnicity; and veteran status of owner.

SBA/Treasury announce enhanced PPP data transparency.  

 

The second quarter of 2020 has come to an end, and that means call report data, which will now include PPP loan information, will be available in a few short weeks. Call report data is credit union or financial institution specific and will not include specific business information. However, the SBA and U.S. Department of the Treasury have come out in support of the Senate Small Business Committee, agreeing to make public additional PPP loan data. All parties have committed to releasing the data while still providing protections for the small businesses served.

 

SBA will disclose the business names, addresses, NAICS codes, zip codes, business type, demographic data, non-profit information, jobs supported, and loan amount ranges as follows:

 

  • $150,000-350,000
  • $350,000-1 million
  • $1-2 million
  • $2-5 million
  • $5-10 million

The exact timing of this release of data is still unknown, but to you can visit the Dept. of Treasury’s website here, to view the data disclosed to date, including total dollars approved, loan sizes, lender sizes and types, loans approved by state, top lenders, loans by industry sector, and funds remaining ($134,453,990,454).

 

Have a great week, stay well, and don’t hesitate to contact me with any questions.

 

 

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