Reps. Barr and Hill to Treasury and SBA: Streamlined Forgiveness 

U.S. House Reps. Barr and Hill wrote to Treasury and the SBA yesterday regarding streamlined forgiveness for Paycheck Protection Program, urging a streamlined application process for loans under $350,000.

"Treasury and the SBA should tailor the forgiveness application to the size and complexity of the loan. Small business owners are already grappling with the challenges they face from the COVID-19 pandemic. The smallest businesses should not be saddled with the same forgiveness reporting burden as larger businesses with larger loans," the letter reads.

Colorado Rep. Scott Tipton was among the 55 cosigners on the letter.
State associations flag concerns over ‘burdensome’ PPP forgiveness application

Fifty-one state bankers associations, including CBA, yesterday raised concerns that the forgiveness application for PPP loans may be overly burdensome for the nation’s small businesses. In a letter to the Treasury Department and the Small Business Administration, the groups called for a de minimis exception for small firms that would provide complete PPP loan forgiveness upon the completion of a simplified, one-page attestation.
FDIC urged to change proposal to mitigate effects of participation in PPP, PPPLF

A recent proposal by the FDIC to provide certainty to banks participating in the PPP and its associated lending facility falls short of completely offsetting the effect of such participation for any institution, ABA and the Bank Policy Institute said in a comment letter this week . The FDIC‘s proposal was intended to ensure that institutions participating in the PPP and the Fed's PPP Liquidity Facility, as well as the Money Market Mutual Fund Liquidity Facility, would not be subject to increased deposit insurance assessments as a result of their participation.
House advances bill providing flexibility for PPP borrowers

As expected, the House yesterday passed a bipartisan bill that would provide greater flexibility for Paycheck Protection Program borrowers . Introduced by Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Texas), the Paycheck Protection Program Flexibility Act would extend the maturity period for unforgiven PPP loans made after the date of enactment to five years and extend the forgiveness period for all PPP loans through the end of 2020.
 
The bill would also reduce the minimum amount that businesses must devote to maintaining payroll from 75% to 60%. The legislation—which passed the house by a 417-1 vote—now goes to the Senate, where a slightly different bill is in play.
Bill for coronavirus liability protection proposed in Colorado legislature 

Sen.  Jack Tate  of Centennial has proposed a bill that would confer immunity from lawsuits upon businesses, nonprofits, educational institutions, religious institutions and government entities that make good-faith attempts to comply with all applicable guidelines on safe operations during the coronavirus pandemic. The immunity “shall not apply to acts or omissions constituting gross negligence or willful and wanton misconduct,” specifies a draft copy of the legislation that Tate shared Thursday with the Denver Business Journal .
Freddie Mac issues guidance for sellers for underwriting self-employed borrowers ‌

Freddie Mac yesterday issued a bulletin providing temporary guidance for underwriting mortgage borrowers whose income is derived from self-employment during the coronavirus pandemic. At a minimum, sellers must obtain an unaudited year-to-date profit loss statement signed by the borrower that reports business revenue, expenses and net income and two months’ business account statements no older than the last two months represented on the YTD profit and loss statement. Alternatively, sellers may use an audited YTD profit and loss statement.
Bankers welcome temporary appraisal relief, seek additional clarity

In a letter to the federal banking agencies yesterday, bankers expressed appreciation for a recent interim final rule providing banks that may be facing operational challenges due to COVID-19 with an option to defer appraisals for certain residential and commercial real estate transactions through the end of the year.
 
The appraisal relief does not apply to loans used for the “acquisition, development and construction of real estate,” and the agencies have been urged to provide additional clarity on the definition of these loans via an FAQ document or similar statement.
Less than 4% of Fed's emergency relief funds have been used  

More than two months after the Federal Reserve's promise to make millions of emergency loans triggered a market rebound, an estimated $96 billion of $2.6 trillion available has been disbursed.

SBA, Treasury allocate $10B of round two PPP funds for CDFIs

To help ensure that PPP funds reach all small businesses in need, the Small Business Administration and Treasury Department today announced that they will set aside $10 billion of the second-round PPP funds to be used exclusively by community development financial institutions.
Colorado Bankers Association
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