Banking groups from across the country are speaking up about what the industry needs in the next coronavirus stimulus package, including PPP reforms, capital and accounting relief, liability protection, ag sector support, and extending the QM “patch.”
On July 16, the WBA joined ICBA and 41 other state banking trade associations in sending a letter to Congressional leaders: Majority Leader Sen. Mitch McConnell, Minority Leader Sen. Charles Schumer, House Speaker Rep. Nancy Pelosi, and Minority Leader Rep. Kevin McCarthy.
The letter urges the lawmakers to include several recommendations in the next COVID-19 relief package:
- Simplified forms and procedures for PPP loan forgiveness
- SBA purchase of residual PPP loans at par
- Preserve expense deduction for PPP borrowers
- Bank capital and accounting relief related to TDRs, CECL, and CBLR
- Liability protection for businesses
- Support for agricultural lending by making interest on ag real estate loans tax-exempt (ECORA)
- Expand employee retention tax credit
- Industrial loan company moratorium
- Mortgage lending: Extend the GSE’s QM patch to January 2022
- Support local regions by raising current bank-qualified municipal bond annual issuance limits from $10M to $50M
- Additional financial assistance to the farm sector
- Enhance USDA’s guaranteed lending programs
Click here to read a full copy of the letter.
For more details on the recommendations, see ICBA’s June 24 letter.