American Financial Services Association - AFSA Urges PPP Loan Forgiveness for Finance Companies
Member login
American Financial Services Association

AFSA Urges PPP Loan Forgiveness for Finance Companies

Articles by: gmcgurn@afsamail.org

This week, AFSA submitted a letter for the record to the House Small Business Committee requesting that Congress instruct the Small Business Administration (SBA) to clarify that finance companies are eligible for Paycheck Protection Program (PPP) loan forgiveness, as directed by Congress in the CARES Act.

The letter was sent in advance of the Committee’s hearing featuring testimony from SBA Administrator Isabella Casillas Guzman on her vision for the agency and a discussion regarding opportunities and challenges facing small businesses as the country emerges from the COVID-19 pandemic.

The hearing touched on several COVID-relief programs, including COVID-19 Economic Injury Disaster Loans (EIDL) and the PPP. House members requested – given all the uncertainties facing businesses and their constituents in their districts – that during the pandemic, the Administrator be responsive to congressional correspondence with the agency. Previously, AFSA applauded Rep. Roger Williams’ letter to the SBA requesting clarification that finance companies are eligible for PPP loan forgiveness.

AFSA’s members, like so many businesses across the country, faced sudden and dramatic revenue shortfalls with the onset of the pandemic. These businesses applied for and received PPP loans to cover payroll costs to prevent furloughing staff. At the time, the businesses took out loans with the understanding that they would be eligible for loan forgiveness given that they followed PPP guidelines.

Now, many of these businesses are seeing their PPP loan forgiveness applications being denied despite the CARES Act mandating that they are eligible for forgiveness. This is largely due to the agency’s April 2020 adoption of a narrower interpretation of eligible businesses, resulting in many installment lenders and vehicle finance companies facing greater scrutiny from SBA lenders regarding their eligibility.

AFSA strongly urges the SBA to make clear that finance companies who complied with CARES Act requirements be granted PPP loan forgiveness.

AFSA Urges PPP Loan Forgiveness for Finance Companies
Nov 18, 2021

This week, AFSA submitted a letter for the record to the House Small Business Committee requesting that Congress instruct the Small Business Administration (SBA) to clarify that finance companies are eligible for Paycheck Protection Program… Read the rest

Remembering America’s Finest
Nov 11, 2021

Veterans Day honors the men and women who dedicated their lives in service to our nation’s defense. They’ve chosen to defend the founding principles that make our nation – even  in times of great challenge – a model for freedom, justice and human… Read the rest

November’s Featured Business Partner Is FICO
Nov 08, 2021

November’s Featured Business Partner is FICO. FICO is the world’s leading provider of analytics software, solutions & services that transform the way organizations understand their customers & optimize business processes

… Read the rest

AFSA Sends Letter to CA DFPI on Proposed Collection Rules
Oct 14, 2021

On Tuesday, October 5, AFSA’s State Government Affairs (SGA) team sent a letter to the California Department of Financial Protection and Innovation (DFPI) commenting on the DFPI’s proposed Debt Collection Licensing Act (DCLA) rules. Many… Read the rest

AFSA White Paper Tackles CROs
Oct 13, 2021

On Friday, October 1 AFSA’s State Government Affairs (SGA) team published their October White Paper covering credit repair organizations. Credit repair organizations claim to seek to improve a consumer’s credit score by having negative… Read the rest

October Featured Business Partner: Hudson Cook, LLP
Oct 04, 2021

October’s Featured Business Partner is Hudson Cook, LLP. We asked them a few questions about the state of play in Washington as we move into 2022. Learn more at hudsoncook.com.

What recent developments at the federal regulators should… Read the rest

House Committee Holds Hearing on the Future of Banking
Oct 01, 2021

Yesterday, a House Financial Services Subcommittee held a hearing on how bank consolidation and the emergence of nonbank financial technology companies (fintechs) are reshaping the banking system. In recent years, fintechs have gained… Read the rest

AFSA Files Amicus Brief in Arbitration Case
Sep 29, 2021

The American Financial Services Association (AFSA) filed an amicus brief before the Missouri Supreme Court in a case involving the enforceability of arbitration provisions in loan agreements. In Bridgecrest Acceptance Corp. V. Kelly … Read the rest

Cannon Confirmed: Get Ready to Be Blown Away!
Sep 14, 2021

AFSA is proud to confirm Carl M. Cannon, the dean of Washington political journalists, as a keynote speaker at its Annual Meeting in Washington, D.C.  Cannon will share his almost 40 years of political insights and experiences with AFSA attendees,… Read the rest

Highlighting the Role of Credit Reporting for Consumers
Sep 10, 2021

The credit report is one of the most important pieces of financial information available to consumers nationwide. It is the key to unlocking more lending options for a new home or car and even enhanced rental opportunities. The beauty of the… Read the rest


Notice: Undefined variable: blog_query in /nas/content/live/afsastaging/wp-content/themes/afsa_new/index.php on line 96

Notice: Trying to get property 'max_num_pages' of non-object in /nas/content/live/afsastaging/wp-content/themes/afsa_new/index.php on line 96

Notice: Undefined variable: wp_query in /nas/content/live/afsastaging/wp-content/themes/afsa_new/index.php on line 44

Notice: Trying to get property 'max_num_pages' of non-object in /nas/content/live/afsastaging/wp-content/themes/afsa_new/index.php on line 44