VACB Past Chair testifies before Congress on PPP
Alice P. Frazier - ICBA secretary, president and CEO of Bank of Charles Town, VACB member and Past Chair – testified before Congress on behalf of ICBA.
The hearing was held on Wednesday, March 10, before the House Small Business Committee on the subject “Next Steps for the Paycheck Protection Program.”
In her testimony Alice P. Frazier called on policymakers to ensure the Small Business Administration clears the thousands of loan applications on hold in the PPP system before the program expires on March 31.
"Under current law, any application not approved by March 31—even if it was submitted prior to that date—cannot receive Paycheck Protection Program funds," Frazier said. "With community banks providing more than 60 percent of PPP loans and saving an estimated 33.7 million jobs, we believe that any application submitted by March 31 should be eligible for approval and funding. No applicant should be left stranded because of bureaucratic red tape."
Frazier also urged Congress and SBA to make the following fixes to the PPP if lawmakers extend it beyond March 31:
The hearing was held on Wednesday, March 10, before the House Small Business Committee on the subject “Next Steps for the Paycheck Protection Program.”
In her testimony Alice P. Frazier called on policymakers to ensure the Small Business Administration clears the thousands of loan applications on hold in the PPP system before the program expires on March 31.
"Under current law, any application not approved by March 31—even if it was submitted prior to that date—cannot receive Paycheck Protection Program funds," Frazier said. "With community banks providing more than 60 percent of PPP loans and saving an estimated 33.7 million jobs, we believe that any application submitted by March 31 should be eligible for approval and funding. No applicant should be left stranded because of bureaucratic red tape."
Frazier also urged Congress and SBA to make the following fixes to the PPP if lawmakers extend it beyond March 31:
- First-Draw Increase Eligibility: Allow borrowers with forgiven loans to apply for a loan increase.
- Second-Draw Eligibility: Allow those applying for a first draw in 2021 to apply for a second draw.
- Second-Draw Use of Proceeds: Establish a level of spending on ineligible expenses that would not disqualify borrowers from receiving a second loan.
- Farm Partnerships: Provide agricultural partnerships with equitable access to funding.
- Schedule C Borrowers: Allow Schedule C filers to apply for a loan increase under new SBA rules allowing them to use the gross income method.
- Save Our Stages Program: Allow live-action venues eligible for Save Our Stages grants to apply for PPP loans.
Community Banks Earn Victories with Stimulus Advocacy
By Paul Merski
Community bankers have hit the ground running this year with another round of Paycheck Protection Program lending, Economic Impact Payment processing, and the everyday business of supporting local communities during the pandemic.
But it is worth taking a moment to reflect on community bankers' success in achieving much-needed emergency provisions in the end-of-year stimulus package. After months of intense lobbying and grassroots outreach, many of ICBA’s priority provision have been signed into law via the Economic Aid Act.
What We Did Together
We kept the community bank message alive and well in Washington in 2020 with a prolific year in community bank grassroots advocacy. As reported in ICBA's recent "2020 in Review" advocacy report, more than 9,000 community bankers sent more than 65,000 messages to Congress and federal regulators last year, including 480 congressional offices.
While ICBA maintains a constant presence with policymakers in Washington, community bank outreach is the difference-maker. And the results speak for themselves.
What We Achieved Together
The stimulus package signed into law at the end of December includes numerous ICBA-advocated provisions benefitting community bank customers and communities. Among its provisions, the bill:
What's Next
While some provisions will require further rulemaking by federal regulators, others are in effect now.
For instance, the provision forgiving EIDL advances to ensure they are not deducted from PPP loan forgiveness amounts is effective immediately and retroactive. However, the SBA will need to determine how it will make whole those borrowers that already received forgiveness payments with the EIDL amount deducted.
More information on the stimulus package's community banking provisions is available in an ICBA summary. Meanwhile, the Independent Bankers Association of Texas offers a helpful matrix of PPP updates, while the SBA and Treasury have pages dedicated to information and resources on the next round of PPP lending.
ICBA and VACB will continue offering additional information and resources on the details of these stimulus provisions. Advocacy works, and we thank community bankers for their tireless efforts last year, which will remain crucial in what is sure to be a busy 2021.
Community bankers have hit the ground running this year with another round of Paycheck Protection Program lending, Economic Impact Payment processing, and the everyday business of supporting local communities during the pandemic.
But it is worth taking a moment to reflect on community bankers' success in achieving much-needed emergency provisions in the end-of-year stimulus package. After months of intense lobbying and grassroots outreach, many of ICBA’s priority provision have been signed into law via the Economic Aid Act.
What We Did Together
We kept the community bank message alive and well in Washington in 2020 with a prolific year in community bank grassroots advocacy. As reported in ICBA's recent "2020 in Review" advocacy report, more than 9,000 community bankers sent more than 65,000 messages to Congress and federal regulators last year, including 480 congressional offices.
While ICBA maintains a constant presence with policymakers in Washington, community bank outreach is the difference-maker. And the results speak for themselves.
What We Achieved Together
The stimulus package signed into law at the end of December includes numerous ICBA-advocated provisions benefitting community bank customers and communities. Among its provisions, the bill:
- Simplifies Paycheck Protection Program loan forgiveness.
- Establishes a lender "hold harmless" provision for PPP loans.
- Fully forgives Economic Injury Disaster Loan advances.
- Supports a new round of PPP lending.
- Allows tax deductibility of business expenses paid with PPP funds.
- Extends troubled debt restructuring relief.
- Extends the CECL delay.
- Improves SBA 7(a) lending terms with lower fees and higher guaranty.
- Provides needed agricultural sector support.
What's Next
While some provisions will require further rulemaking by federal regulators, others are in effect now.
For instance, the provision forgiving EIDL advances to ensure they are not deducted from PPP loan forgiveness amounts is effective immediately and retroactive. However, the SBA will need to determine how it will make whole those borrowers that already received forgiveness payments with the EIDL amount deducted.
More information on the stimulus package's community banking provisions is available in an ICBA summary. Meanwhile, the Independent Bankers Association of Texas offers a helpful matrix of PPP updates, while the SBA and Treasury have pages dedicated to information and resources on the next round of PPP lending.
ICBA and VACB will continue offering additional information and resources on the details of these stimulus provisions. Advocacy works, and we thank community bankers for their tireless efforts last year, which will remain crucial in what is sure to be a busy 2021.
Meet Your 2021 Leadership
At VACB’s Live, Virtual Convention, we proudly elected our 2020-2021 officers and directors.
2020 - 2021 Officers
VACB Chairman
J. Michael Thomas Select Bank Lynchburg |
VACB Chairman Elect
Dennis A. Dysart First Bank Strasburg |
VACB Vice Chairman
Jay A. Stafford Benchmark Community Bank Kenbridge |
Directors Class of 2023
J. Steven Grist
CornerStone Bank Lexington |
James E. Hendricks
Village Bank Midlothian |
Lisa E. Kilgour
MainStreet Bank Fairfax |
Paul M. Mylum
National Bank Blacksburg |
Thomas L. Rasey, Jr.
The Farmers Bank of Appomattox Appomattox |
