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
STATEMENT | House Members Introduce Anti-Consumer Rate Cap Bill
Nov 18, 2021
This week, Reps. Jesús “Chuy” García (D-IL), Glenn Grothman (R-WI), and other House Democrats reintroduced a 36% “all-in” rate cap bill. The bill, entitled, The Veterans and Consumers Fair Credit Act (H.R. 5974), would extend the Military… Read the rest
AFSA Outlines Dangers of Credit “Repair” Organizations
Nov 17, 2021
In a letter to the Democratic and Republican leaders on the Senate Banking Committee, AFSA shared its thoughts on the current state of credit reporting.
Specifically, AFSA highlighted the increasing number of frivolous or duplicative credit… Read the rest
Navigating with Confidence Under the Umbrella of Economic Uncertainty
Nov 17, 2021
The following blog post is from LexisNexis Risk Solutions as an add-on to their recent Extra Credit Podcast episode with Solomon Semere, Senior Director, Credit and Marketing Strategy and Craig Stockum, Sales Director.
Historically, the… Read the rest
WATCH | Throw the Baby Out with the Bath Water?
Nov 17, 2021
At some point in your product evolution, you’ll reach a point where you’ll ask yourself, “Is it time to start over?” It’s inevitable. Or it should be. But, what if you’ve recently gotten in bed with your once-top competitor and are supporting… Read the rest
Senators Lead Efforts Opposing Postal Banking
Nov 16, 2021
Today, Senator John Boozman (R-AR) led a group of 19 Senators opposing the United States Postal Service’s (USPS) expansion into banking.
In September, the USPS launched a banking pilot program to expand consumer financial services to limited… Read the rest
Registration Open! | Jon Taffer to Keynote 2022 Vehicle Finance Conference & Expo
Nov 15, 2021
Registration is open for AFSA’s 2022 Vehicle Finance Conference & Expo from March 8th – 10th at the Bellagio Las Vegas.
Need more motivation than meeting up in Vegas? We are pleased to announce that Jon Taffer, star of “Bar… Read the rest
AFSA Attends NCSL
Nov 11, 2021
AFSA’s State Government Affairs (SGA) team recently attended the National Conference of State Legislatures (NCSL) Legislative Summit in Tampa, Florida on November 3 and 4. At the summit, state legislators and regulators as well as … 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
CFPB Reports on Credit Disputes
Nov 08, 2021
Last week, the CFPB released a report entitled, Disputes on Consumer Credit Reports. The purpose of the report was to document how disputes can appear in credit record data, the characteristics of consumers whose disputes appear on their … Read the rest