A new House bill would exempt PPP loans from small banks' asset totals.If the bill becomes law, it could free up smaller FIs to continue participating in future government stimulus measures as the coronavirus pandemic drags on. If banks are concerned that relief lending would result in onerous, unmanageable regulatory obligations, they may not be willing to continue lending in the future.
That would significantly dent the government's effectiveness in distributing relief funds: 5,338 lenders with less than $10 billion in assets were responsible for a total of $233.
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