August 26, 2020
By: Caity Roach (née Witucki)
Contributing Editor, C-Suite Wednesday
C-Suite Wednesday — 52% of SBA Lenders Anticipate Another Stimulus Package
Over the past three months, congressional leaders have proposed numerous coronavirus relief bills with funding for small businesses. However, negotiations broke down before Congress left for summer recess, leaving small businesses and business lenders impatiently waiting to see what will be included in the next relief bill.
According to the latest polls conducted during the Coleman Report Live daily show, over 50% of SBA lenders anticipate Congress will focus on passing a new economic stimulus package after the summer recess. Other anticipated congressional actions include an extension of PPP through the end of the calendar year, set-asides for businesses with high rates of revenue loss, simplified forgiveness, and the opportunity for some small businesses to obtain a second PPP loan.
Here are the highlights from this week’s polls:
- Nearly half of the poll respondents (59%) say that they are now either dissatisfied or extremely dissatisfied with Congress’s response to the economic crisis.
- 36% of SBA lenders say that they support a one page forgiveness application for PPP loans under $150,000 and 50% say they would support extending the one page forgiveness application to loans up to $250,000.
- An overwhelming majority (97%) of lenders say that they believe all regulations pertaining to another round of PPP loans should be disclosed up-front.
- 38% of participating SBA lenders say that they anticipate Congress will pass a PPP extension first, 52% say that they will pass a stimulus deal first, and 10% suspect they will pass P4.
- 55% of lenders say that their borrowers feel more pessimistic about the economy and only 20% say their borrowers are more optimistic.
Although Congress is scheduled to be on summer recess until September 7th, Nancy Pelosi called the House back into session on August 16th to address a stimulus package that included additional funding for the U.S. Postal Service and the SBA. However, during negotiations, the postal bill was split from the larger stimulus package and voted upon separately. Congress is not expected to address the stimulus package until the Senate is back in session after Labor Day.
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