CUNA and NAFCU say PPP rules are needed before loans are made

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Financial and industrial business groups, including CUNA and NAFCU, are urging the Small Business Administration and the Treasury Department to issue guidelines and rules for the resurrected paycheck protection program before any loans are issued.

“It is imperative that the SBA, the Treasury and other agencies involved provide comprehensive and timely advice detailing the new program rules to minimize program delays or last minute changes that would force businesses and lenders to change policies. running loans, ”the groups, including the American Bankers Association and industry groups such as the National Retail Federation, whose members may apply for PPP loans, wrote in a letter to the agencies.

Although he complained about certain provisions of the bill, President Trump signed on Sunday evening on Omnibus financing bill for economic recovery which renewed the P3, provided economic impact payments to individuals, and funded much of the federal government until the end of FY21.

Trump did not make any complaints about the PPP, but said the economic impact payments of $ 600 per person were too low and that part of the foreign aid, to which his administration had granted, was a waste.

When the PPP was established earlier this year, the SBA and the Treasury Department attempted to obtain business loans as quickly as possible. This meant that during the first few months of the program, the Trump administration was constantly updating rules and guidelines.

the GAO reported in September that the rulemaking process was so confusing and contradictory that financial institutions were reporting “lender fatigue”. And the inspector general of the ASB reported that the program was rolled out so quickly that fraudsters were able to take advantage of the confusion to obtain loans.

In their letter, the groups said that providing advice in a timely manner would save borrowers time and allow lenders to implement the program smoothly. They said there were major hurdles in implementing the original PPP that took weeks to recover.

However, some online lenders are already pre-registering potential PPP borrowers.

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