C-Suite Wednesday – SBA Lenders Unsure About PPP Rules and Procedures
August 19, 2020
By Caity Roach (née Witucki)
Contributing Editor, C-Suite Wednesday
C-Suite Wednesday – SBA Lenders Unsure About PPP Rules and Procedures
According to the latest polls conducted during the Coleman Report Live daily show 32% of SBA lenders felt unsure about the rules regarding the disclosure of agent fees on SBA Form 159.
In addition to rules regarding agent fees, here are the highlights from this week’s polls:
- 43% of lenders say they expect Congress to address PPP during the current session, which is now scheduled to end on September 7th.
- 7% of lenders did not know that 60% of PPP loan proceeds must be used on payroll in order for the borrower to receive full forgiveness.
- A little over 1 in 4 (26%) SBA lenders say that they anticipate doing USDA B&I or CF loans.
- 64% of SBA lenders say that online school attendance has affected borrowers in their footprint, with 38% saying that it was a major impact and 26% saying it was a little impact.
- 14% participating SBA lenders are concerned about the ongoing class action lawsuits regarding PPP agent fees.
PPP class action lawsuits regarding payment of agent fees have been emerging over the past couple of months. Agents claim that banks such as JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, and several others, have unlawfully withheld fees owed to agents for assisting in the PPP application process.
During the June 30, 2020, hearings before the House of Representatives, Treasury Secretary Steven Mnuchin indicated that additional guidance on the rules and procedures pertaining to agent fees and PPP loan forgiveness would be forthcoming. Additional guidance is anticipated prior to the end of this congressional session.
To receive the latest industry updates, please join the free Coleman Report Live daily show at 1:00 PM Eastern.
Source:
National Law Review