A group of House Republicans this week called on the regulatory agencies to exclude SBA Paycheck Protection Program loans from asset-based regulatory thresholds, deposit insurance premiums and other regulatory requirements.
Because of the complexity of the forgiveness process, lenders have had to hold PPP loans on their balance sheets for longer than anticipated, and many are now running up against asset-based regulatory thresholds and could be subject to regulatory action as a result, the lawmakers noted.
“Depository institutions have done an admirable job with administering PPP, a program which has saved more than 51 million American jobs,” they wrote. “We do not believe banks and credit unions should face increased, potentially costly regulatory scrutiny as a consequence of assisting with the implementation of an emergency economic relief program. Furthermore, given that PPP loans are guaranteed by SBA, PPP loans are not designed to present credit risk to participating lenders.”