WASHINGTON – Sen. Mike Lee (R-UT) introduced the Protections for Good Faith PPP Borrowers and Lenders Act Monday, legislation designed to protect good faith borrowers and lenders from penalties associated with the Paycheck Protection Program (PPP).
“Lending institutions served an important role in delivering support to employers and employees during a very uncertain and difficult time for our country,” Sen. Lee said. “These good faith actors should not be penalized for changes made to PPP after they had already acted.”
Specifically, the legislation would:
- Gives good faith lenders who participated in the PPP protection from penalties and from enforcement actions under the Small Business Act; the False Claims Act; the Financial Institutions Reform, Recovery, and Enforcement Act; and other criminal and civil laws
- Protect borrowers who do not engage in fraud or misuse of funds from penalties
- Remove PPP loans from calculation of assets or balance sheets for regulations based on the size of a lending institution
- Remove PPP loans from the regulatory purview of the CFPB