PPP lender liability, loan forgiveness should be addressed

Changes to regulations and the creation of new lending programs have, and will continue to help consumers affected by the COVID-19 pandemic, CUNA wrote Friday to the House Small Business Committee for its hearing on oversight of pandemic recovery programs. CUNA thanked Congress for its efforts to establish the Paycheck Protection Program, as well as the Federal Reserve for creating a PPP Liquidity Facility, which made it easier for credit unions to make PPP loans without liquidity concerns.

CUNA also called on Congress and the Small Business Administration to address PPP lender liability concerns.

“Credit unions and other lenders essentially acted as agents of the government disbursing funds to small businesses during this time of need,” the letter reads. “Congress and the SBA ought to do the right thing by holding lenders harmless for errors that may have been made as a result of unclear, ambiguous or inadequate guidance, as well as misstatements and fraudulent activity on the part of borrowers. Congress should use upcoming recovery legislation to protect lenders from PPP related liability.”

 

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