U.S. Senators Todd Young (R-Ind.), John Cornyn (R-Texas), Steve Daines (R-Mont.), Michael Enzi (R-Wyo.), Joni Ernst (R-Iowa), James Lankford (R-Okla.), Rand Paul (R-Ky.), and James Inhofe (R-Okla.) Monday sent a letter to the U.S. Small Business Administration (SBA) requesting that lenders be permitted to submit applications for the Paycheck Protection Program (PPP) despite the program’s funding lapse.
Enabling lenders to continue processing applications would help alleviate the already developing backlog that will be problematic for SBA lenders once additional PPP funding is approved.
“It is evident that the PPP loan program is one of the most critical measures of financial relief for small businesses. These loans are protecting employees, keeping doors open, and bringing a sense of normalcy to American workers during a time of abnormality. As Congress continues negotiations to provide PPP with additional funding, it is important we understand the full interest in the program. We are concerned that the E-Tran system will be overwhelmed if the SBA does not allow submissions before the program reopens. Keeping the system operational will mitigate the influx once the program receives more funding, and will have the added benefit of being able to more accurately gauge demand in the current backlog,” the Senators wrote.
“The Indiana banking community echoes the senators’ call to the SBA to continue accepting Paycheck Protection Program loan applications during the current funding lapse,” said Amber Van Til, president and CEO of the Indiana Bankers Association. “There is momentum to inject additional funds into the program, and banks will be eager to act quickly once the program resumes. Our goal is to be prepared to help the small business sector as expediently as possible.”
“Credit unions all over the state have been working day and night to help their local business members get the PPP loans they need,” said Indiana Credit Union League President John McKenzie. “Giving credit unions and other lenders the ability to continue to process these applications now would be very important to helping the process run more smoothly once the program opens up again.”
Here is the letter – 200420 – Letter to SBA re E-Tran – Final1