CSBS requests clear guidance on PPP from SBA, Treasury

Federal Issues CSBS SBA Department of Treasury CARES Act Covid-19 Small Business Lending

On April 9, the Conference of State Bank Supervisors (CSBS) sent a letter to Treasury Secretary Steven T. Mnuchin and Small Business Administration (SBA) Administrator Jovita Carranza regarding Paycheck Protection Program (PPP) guidance. The letter requested the SBA and Treasury to (i) “[i]nstitute clear, coordinated, and timely guidance and communication on PPP”; (ii) “[e]nsure community banks and their small business customers have equal access to PPP loans”; and (iii) “[e]stablish transparent, public disclosure on PPP loans” in order to make the PPP successful. Among other points, CSBS specifically asserted that different SBA offices are providing conflicting information regarding PPP loan funding, and lenders require guidance on required documentation, initial disbursements, and terms and structure of unforgiven amounts on the PPP loans. Additionally, community banks are experiencing difficulties with the SBA’s loan application submission portal, including access and requests for additional information. Finally, the letter urges public disclosure of PPP loan statistics.