ABA Raises PPP-Related Issues in Letter to SBA, Treasury (ABA Banking Journal)
Summary
ABA's January 25, 2021 article reports a letter to the acting heads of the Small Business Administration and the Treasury Department about problems since the PPP re-opened. ABA says the portal does not let lenders upload second-draw applications while the borrower has a pending first-draw forgiveness application. Lenders also reported a high number of incorrect error messages on submission. ABA flagged documentation for the 25% revenue reduction required for second-draw loans, noting that many banks completed applications before SBA and Treasury released guidance. ABA urged the agencies to let borrowers and lenders rely on the guidance in force when the lender received the application.
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ABA Raises PPP-Related Issues in Letter to SBA, Treasury January 25, 2021 Reading Time: 1 min read In a letter to the acting heads of the Small Business Administration and Treasury Department today, the American Bankers Association raised several significant issues that have arisen since the PPP re-opened earlier this month. Specifically, ABA flagged that the PPP portal does not permit lenders to upload borrower applications for second-draw loans if the borrower still has a pending forgiveness application for a first-draw loan with SBA. Lenders have also reported receiving a high number of incorrect error messages when submitting PPP loan applications for the portal, ABA said. Finally, the association flagged an issue related to documentation requirements to demonstrate a 25% revenue reduction for second draw loans, noting that many banks had completed borrower applications before SBA and Treasury released detailed guidance on what types of information would satisfy these requirements. ABA urged the agencies to clarify that borrowers and lenders may rely on the guidance at the time the loan application was received by the lender. Tags: Coronavirus COVID-19 SBA Paycheck Protection Program Small business Small business lending Related Posts FinCEN issues alert on religious charities allegedly tied to Iran Compliance and Risk October 15, 2026 FinCEN issued an alert to help financial institutions identify and report what the agency says is potential Iranian abuse of religious charity networks. ABA Foundation marks 24th Get Smart About Credit Day with expanded financial education resources Financial Education October 15, 2026 The ABA Foundation celebrated the 24th annual Get Smart About Credit Day with the release of expanded resources designed to help bankers provide teens and young adults with practical financial education. Mortgage rates hold steady Economy October 15, 2026 The rate for a 30-year fixed-rate mortgage was 7.4% this week. The rate for a 15-year fixed-rate mortgage was 6.71%. Beige Book: Economic activity mixed among Fed districts Economy October 15, 2026 Two Federal Reserve districts reported moderate growth in economic activity, three districts reported modest growth, four reported slight growth and three reported no significant change. Financial Stability Board finalizes ‘sound practices’ for AI adoption Compliance and Risk October 15, 2026 FSB finalized a list of 12 sound practices to guide the adoption of artificial intelligence by banks and other financial institutions. ABA offers enhancements for proposed extended bank exam schedule Newsbytes October 15, 2026 In a letter to banking agencies, ABA expressed support for the implementation of a new law expanding the number of banks that qualify for an 18-month examination schedule, although it had two suggestions for how to improve the...
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