NAICU Washington Update

Paycheck Protection Program Focus of Congressional Hearings

October 02, 2020

Late last week, the House Subcommittee on Economic Growth, Tax, and Capital Access held a hearing focused on the frustrations many banks and loan recipients are having with the Paycheck Protection Program (PPP). 
During the hearing, which heard witnesses testify about the burdens of implementing the PPP, Rep. Bradley Scott Schneider (D-IL) said many small businesses are simply opting to pay back the loans rather than trying to figure out the forgiveness provisions. He called for clarity, simplicity, and consistency in the forgiveness policy.
Chairman Andy Kim (D-NJ) remarked that simplicity will be the key for small businesses, as well as eliminating unnecessary barriers to full loan forgiveness.  Rep Kim recommended that federal agencies should come together to design a streamlined process.
Within the past week, Congress held two additional hearings demonstrating the complexity of implementing the PPP for recipients: one on Small Business Administration legacy systems and inaccurate data; and another on preventing fraud and abuse

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