Collins Fights for Community Banks Struggling to Process Small Business Loans
GAINESVILLE, Ga. — Rep. Doug Collins (R-Ga.) today wrote a letter to U.S. Department of Treasury Secretary Steve Mnuchin and U.S. Small Business Administration Administrator Jovita Carranza concerning the challenges community banks are facing as they work to process Paycheck Protection Program (PPP) applications on behalf of small businesses seeking financial relief in the midst of COVID-19.
“I have heard from a number of community banks in Georgia that are struggling to access E-TRAN, SBA’s system for processing PPP loans and a necessary component of borrower approval,” Collins wrote. “Unfortunately, it seems community banks have been inadvertently shoved out of the application process. Instead, larger banks are flooding the system and rendering it inaccessible to smaller lenders, which are applying on behalf of many small businesses across America, including those left out of the first round of funding.”
As Collins pointed out, a number of large businesses who may or may not need payroll assistance quickly drained the first round of PPP funding. Since the second round opened up on Monday, larger banks again dominated the first days’ worth of funding. For this reason, he urged SBA and Treasury to take a number of steps to protect our community banks and smaller businesses.
“I urge Treasury and SBA to issue prompt guidance explaining how the loan-processing system will be made available to all sizes of lenders and how the agencies will prevent future rounds of funding from being dominated by larger banks,” he continued. “I also request Treasury and SBA publicize which companies have received PPP loans to ensure Congress and the American people can understand where their taxpayer dollars have flowed.”
To read the full letter, click here.