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MBA Press Release
Mindy Lehman, Senior Vice President of Government Relations & Communications
443-837-1613 / [email protected]
FOR IMMEDIATE RELEASE: April 16, 2020
Maryland Bankers Association Urges Immediate New Funding for the Paycheck Protection Program and Action to Protect Businesses with Applications in Process
Annapolis, Maryland, April 16, 2020 – The Maryland Bankers Association urges immediate new funding for the Paycheck Protection Program and action to protect businesses with applications in process. MBA and our member banks from across the State urge Congress to act immediately to provide additional funding for the Small Business Administration’s Paycheck Protection Program (PPP) and for additional steps to be taken to protect the small businesses in the pipeline for PPP loans. In less than two weeks, this program approved $350 billion in financial assistance to small businesses across Maryland and the U.S., helping those businesses maintain their employees and cover operating expenses during the COVID-19 emergency. While we have been reassured by statements from Congressional leaders, Treasury and the Trump Administration that if more time or more funding are required for the PPP, it will be there for small businesses – the time to act is now.
Despite the challenges of creating and rolling out this unprecedented program in a matter of days, bankers have been working around the clock to meet the needs of Maryland’s small businesses. And we are seeing results. Nearly 1.5 million applications nationally have been approved including 12,000+ in Maryland; these approved loans have begun to be funded. But to meet the overwhelming demand among small businesses whose applications have not yet been completed or are in the pipeline and not yet approved, additional funding for the PPP is needed. MBA urges swift congressional action to re-appropriate the additional $250 billion earmarked for the PPP in the fourth stimulus package pending in Congress so that banks can help small businesses across Maryland continue to access the much-needed relief.
MBA was distressed to see the Treasury/SBA release last evening https://home.treasury.gov/news/press-releases/sm981 stating that, in the absence of additional funding, they are unable to maintain the small business loan applications currently in the PPP pipeline and not yet approved by SBA. This is unacceptable. In addition to the new funding, additional steps can and must be taken to protect the small businesses that have already applied for the loans. To require these businesses to start over would be devastating. It is imperative that Treasury and SBA act to address this issue.
Maryland banks stand by Maryland’s small businesses. Maryland banks were there for their small business customers before the federal Paycheck Protection Program (PPP) and will continue to be there for them after the Paycheck Protection Program. The PPP is a critical source of partially forgivable loans for small businesses. However, other programs are in place to assist small businesses; banks continue to work with their small business customers in a variety of ways to help meet their needs. As we await further action from Congress to approve additional funding for the PPP program and other SBA emergency loan programs, MBA continues to urge small businesses to reach out to their banks and other lenders, if they have not already done so, to talk about their financial needs.
Founded in 1896, the Maryland Bankers Association (MBA) is the only Maryland-based trade group representing banks in the state. MBA's member banks employ about 28,266 banking professionals in nearly 1,490 branch offices across the state.
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