AFSA Advocates for Expansion of SBA PPP Increases

President Trump today signed into law an additional $484 billion in coronavirus relief, $310 billion of which replenishes the Small Business Administration (SBA) Paycheck Protection Program (PPP). Senate Small Business Committee Chairman, Sen. Marco Rubio (R-FL) announced via Twitter that he expects the PPP to restart Monday morning.

Last night, Rep. Ted Budd (R-NC) along with a bipartisan group of 27 other members of Congress submitted a letter to Treasury Secretary Steve Mnuchin asking him to level the playing field for access to the PPP by nonbank finance companies. You can read the full letter here.

“As you may know, in many parts of our districts (especially in our rural communities), our constituents’ sole access to financial services is from small-size nonbanks—installment lenders, finance companies, factoring companies, and CDFIs, to name a few—and as a result have been designated “essential” businesses permitted to remain open…,” the letter noted. “Yet these businesses have been shut out completely from the PPP, which has forced many of them to lay off their highly trained employees who would have preferred to keep their jobs than seek government unemployment assistance.”

AFSA wholeheartedly agrees with the position of the members and continues to advocate for the inclusion of nonbank finance companies, such as installment and vehicle financial lenders. Vehicle finance lenders are uniquely equipped to support both their dealership partners and consumers. Traditional installment lenders are a crucial part of Main Streets across the nation and will be important players in helping jumpstart the American economy in the coming weeks and months. 

"As the economy reopens, consumer lending — from auto finance to installment loans — will be crucial to jumpstarting growth and our members will be there to help," AFSA VP of Communications Ed McFadden, said in a POLITICO story [paywall] this afternoon.