Investing.com investing.com 22 Dec, 2020 11:45 am

U.S. lenders score small business relief, accounting help in pandemic package By Reuters

U.S. lenders score small business relief, accounting help in pandemic package By Reuters
U.S. lenders score small business relief, accounting help in pandemic package

31, which has made it easier for banks to give borrowers leeway on repayments by waiving the usual accounting treatment for modified loans.Had the accounting waiver expired, banks would curtail their loan modification programs rather than incur the increased capital charges and regulatory scrutiny that come with the normal accounting treatment, said lobbyists.Congress over the weekend struck a deal on another pandemic aid package, including one-time $600 checks for most Americans, extended unemployment benefits of $300 per week and $284 billion more for the small business Paycheck Protection Program (PPP).[L4N2I92PW] "It's an improvement over the current PPP program and has many fixes that needed to be addressed, and it extends some relief for the community banks and lenders to continue supporting small businesses," said Paul Merski, an executive vice president at the Independent Community Bankers (NASDAQ: ESXB ) of America.

Among the biggest wins is a new streamlined process for writing off PPP loans.Under the program, lenders have dished out more than five million PPP loans worth a total of $525 billion to small businesses, on behalf of the government.

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