Source: United States House of Representatives – Representative Sean Patrick Maloney (D-NY)
Headline: Maloney Calls for SBA Improvements to Help Hudson Valley Small Businesses and Lenders
Maloney Calls for SBA Improvements to Help Hudson Valley Small Businesses and Lenders
Newburgh, NY – This week, Rep. Sean Patrick Maloney (NY-18) called on the Small Business Administration (SBA) to improve the application submission process for small business owners and lenders applying for Paycheck Protection Program (PPP) loans. On Monday, larger lending institutions were allowed to submit a onetime batch of 5,000 loan applications, while small and community institutions who couldn’t meet that minimum had to submit applications individually.
“Hudson Valley businesses shouldn’t be sent to the back of the line just because we’ve got small community lending and banking institutions – not big banks. The SBA needs to improve their systems and level the playing field for all applicants applying for emergency funding – now, and in the future,” said Rep. Sean Patrick Maloney.
The SBA’s Paycheck Protection Program reopened Monday, after funds were replenished by Congress last week. In order to expedite application submissions, the agency created a new process for lenders that allowed the submission of a minimum of 5,000 loan applications at one time. Unfortunately, lenders who had fewer than 5,000 loan applications still had to send applications to the SBA one-by-one, slowing the process and potentially setting back applications for small business owners who bank and work with smaller institutions.
Yesterday, Rep. Maloney held a listening session with Hudson Valley small businesses to hear directly from them about the challenges they face while applying for the SBA’s PPP and emergency economic injury grants and loans. The event was livestreamed on Facebook and can be found here.
On Tuesday, he led a bipartisan letter to SBA Administrator Jovita Carranza calling on the agency to provide application status updates to small businesses who have applied for emergency disaster loans and grants through the agency.
Read the letter here or below:
April 30, 2020
US Small Business Administration
409 3rd St, SW
Washington DC 20416
Dear Administrator Carranza:
I write today to express concerns regarding the Paycheck Protection Program (PPP) bulk submission process that was implemented on Monday, April 27. Though the timeframe for lenders to submit bulk submissions is now over, I’d like to voice a few concerns that I am hearing from small business owners and lenders in my district.
As you know, the Small Business Administration PPP reopened on Monday April 27. Your agency sent out guidance on Monday outlining how to submit a one-time XML file of 5,000 loans. I realize this was in an effort to help those lenders who have an overwhelming amount of applications for the program. However, setting the minimum amount of lender-approved and SBA-ready PPP loans that a lender must have ready for the file submission to 5,000 loans was far out of reach for most of my district’s lending community. Instead, many of them had to submit loan applications one by one – an inefficient and time-consuming endeavor.
Smaller lending institutions who would have benefited from a lower minimum of 500 rather than 5,000 were thus not able to participate in this expedited process. If the SBA or Treasury decides to reopen the bulk submission process in the future, with the PPP or related small business loans, I ask that they will take these concerns into consideration.
I recognize these are challenging times and know that we both have the same goal of helping our small businesses who need it most. I look forward to working with you to ensure our small businesses stay afloat and get equal access to the relief Congress has provided.
Sean Patrick Maloney
MEMBER OF CONGRESS