Hearings on the ppp, and weve heard from borrowers and lenders about the challenges theyve faced in accessing the program. Ive also traveled across my district of burlington and ocean counties in new jersey to speak with Business Owners about how theyve fared during the pandemic, and ive heard some of the successes and challenges theyve faced with ppp and uncertainty about what the future holds. From borrowers who eventually did access a loan, the Committee Heard concerns about complicated, unclear, and sometimes conflicting Program Rules and other requirements associated with loan forgiveness. Lenders also expressed a great deal of frustration over the needlessly complicated rules and reported feeling unable to adequately help their borrowers through the forgiveness process. Through it all, borrowers simply wanted to ensure they were using loan proceeds consistent with the law so they could qualify for full loan forgiveness, and effectively convert the loan into a grant, which was the congressional intent in the cares act. Loan forgiveness is a centerpiece of the Paycheck Protection Program, especially since the expectation by many borrowers and lenders was that the loans would be fully forgiven. Less than full forgiveness for a large body of loans could have serious unintended negative consequences for borrowers and lenders who have developed Business Plans around full loan forgiveness. As early as june, sba and treasury recognized how challenging the initial loan forgiveness application was and released an ez Application Form. Unfortunately, borrowers and lenders alike have reported no material differences between the forms and calls for a streamlined Application Form for smalldollar ppp borrowers have increased. In the meantime, lenders have remained limited in their ability to provide guidance to their borrowers, leading to great anxiety and helplessness among borrowers, who just want to do things the right way, and need clear and simple rules from sba and treasury in order to do so. And finally, we have some data to corroborate what the Lending Community has been reporting anecdotally. This week, the Government Accountability office, or gao, published a new report showing that as of september 8, sba had only received about 56,000 forgiveness decisions from lenders, representing just over 1 of the over 5. 2 million ppp loans outstanding. This figure substantiates what the Lending Community has been reporting anecdotally. First, borrowers are struggling to simply understand the terms and data needed to accurately complete the forms. And second, lenders are limited in their ability to provide Technical Assistance to borrowers completing the forms because of the insufficient guidance. So as we enter the forgiveness period, it is timely to conduct this hearing dedicated specifically to loan forgiveness, so that our subcommittee can assess the issues faced by borrowers and lenders and weigh proposals to provide relief for borrowers who need it. I look forward to our discussion today and thank each of you again for taking the time to testify before us today. I now youll to the Ranking Member for his Opening Statement yield. Thank you, mr. Chairman, and thank you for this very important timely hearing. Small businesses across this nation from my state of oklahoma to the chairman stitching in new jersey have been disproportionate devastated by covid19. When it reached our Country Congress acted fast come numerous programs were created and the men to provide assistance to the American Public and our economy. One of these programs was a Paycheck Protection Program here in a matter of days the sba and the Department Treasury outlined rules and regulations so the latest could start assisting Small Businesses. The federal government moved quickly and i would like to them for that. One of the top sba officials in charge of ppp testified yesterday presented Important Information to our committee. Todays conversation will build on that hearing and focus on the critical aspects of epp loan forgiveness. As a Small Business owner for 35 years and the founder of the local community make i can see a difficult this process can be for borrowers and lenders alike. My goal and id like to think it is same for all of my fellow Committee Members is to make this process, forgiveness process as simple and as efficient as possible. We ask the lender to carry a heavy burden and are Small Businesses are being crushed under circumstances out of their control. We owe it to them to discuss further ways to string line the process. Unfortunately intent to hinder come continue hinder how congress can provide assistance while improving the program. Just this week we try to fill to get a vote on h. R. 8265 that would improve and extend the popular program. More work needs to be done and that is why this theory is paramount. It is unconscionable we continue to ignore our nations smallest firms that desperately need this assistance. Small businesses and lenders need full rules of the road in order to make everyday business decisions. Changing guidance present challenges when it sees Seek Solutions to so this process can be improved. I look for to exploring the topics to today with our witne. I know there are some concerns that a witness but for the above specific member of the house and the way their office conducts business. Even though this member is not here to defend himself. This is not how we conduct business. We strive to work in a bipartisan manner so its important we do. We did not attack one another for political gain and im extremely disappointed my colleagues would allow this testimony to be on the record. Truthfully many of the problems are what does is bring up that he could easily be solved if the majority would allow Ranking Member stabenow bill h. R. 8265 to come for a vote. As most of them if not all would support it. All of them have the opportunity to allow this bill to come for vote by signing the discharge petition for 8265 which was filed by Jaime Herrera butler earlier this morning. I urge my colleagues to take action to help Small Businesses in each of the distance across the country i signed the discharge petition on the, since legislation which they all support behind the scenes. I would also like to say this is the second that ive been disappointed by the majority selection of a witness and help this is not a signal of the committee is becoming. Thank you, mr. Chairman. I yield back. Thank you, mr. Hern. Appreciate your comment would like to take a moment to explain how this hearing will proceed to each witness will have five minutes to provide a statement and each Committee Member will have five minutes for questions. Please ensure that your microphone is on when you begin speaking and that you return to mute when finished. With that i would like to introduce our witnesses before we begin. Our first witness today is ms. Lynn ozer, president of the sba Lending Department at fulton bank, a 20 billion Regional Bank headquartered in lancaster, pennsylvania. She manages all of the sba lending which covers my home state of new jersey, pennsylvania, maryland, delaware, virginia, washington, d. C. , and 249 office locations. She graduated magna cum laude from Temple University where she earned a bba degree, majoring in accounting. She served as the first female chairwoman of the board of directors of the National Association of government guaranteed lenders and she is presently cochair of the Technical Committee while serving as an instructor for the association. Welcome, mr. Gosar. Our second witness is ms. Amy bonfig, the owner of little saints academy, a Childcare Center in central minnesota. When so few ppp bar was had applied for the forgiveness, his bond the had not only completed the loan Application Form letters also start an Informal Network of fellow Childcare Center in minnesota to help them work through the forgiveness application process. Ms. Bonfig, we look for to hearing your feedback on the application process, as a borrower and welcome you here today. Our third witness is mr. Jim parker, a Small Business owner from my district, founder and owner of riverview studios and a 42 year veteran for labor. He has program for Public Television during history has produced hundreds of multilingual documentary programs for corporate and nonprofit clients. He is also face serious obstacles with the ppp forgiveness process, and we look for to hearing his perspective on the issues as well. Thank you for joining us today from the new jersey third congressional district, mr. Parker. I would now like to yield to the Ranking Member to introduce our final witness. Thank you, mr. Chairman. Our next witnesses pete patel, the ceo and president of promise hotels, Company Founder with his wife 12 years ago. Promise hotels is a Hospitality Business of group that runs a dozen hotels in the tulsa, oklahoma, area. My district. With five years of experience he is a current board member of your club hotel and lodging association and the tulsa hotel and lodging association. Hes also a former board member of the Tulsa Metro Chamber of commerce. Mr. Patel we are grateful you can take the time away from running their businesses to talk with us this morning. We know that you any other witnesses are very busy so we appreciate all of your time. Welcome and we look forward it to your testimony. Thank you, mr. Hern. We will start with the witnesses here, so ms. Ozer, you are no recognize for five minutes for your Opening Statement. Thank you for inviting me, and good morning, everyone. My bank made nearly 2 billion of ppp loans serving 11,000 Small Businesses that were desperate, and lenders nationwide stepped up to implement this congressionally provided lifeline. We should applaud the countless Success Stories of businesses saved and employees retained. But it hasnt been easy. They were front in issues especially with eligibility and lenders role, and simple no cost fixes are needed in any future program extension. We must learn from what didnt work. When it comes to forgiveness, significant concerns need to be addressed now. Piecemeal guidance continue to create confusion. There still no guidance for major issues, and without answers i i cannot help my borrowers. We have no idea how i guarantee will be honored when a a busins that permanently closed or file bankruptcy. If loads have remaining balance after forgiveness we have no idea how we are expected to service those loans long term. For bar was requesting permission to sell to new owners we have no idea how to help them. More portly, borrowers are confused by the burdensome forgiveness process, and panicked at the loans they believed would be grants if they follow the rules may become burdensome debt because they cant muddle through the paperwork. Borrowers remain confused about the covered. Mac and how to document, i will expect account with local governments shifting requirements. They are concerned about date harvick calculations of qualify for full forgiveness. One of our borrowers summarizer angst, i quote, i have tried and read many instructions regarding the forgiveness application by still find it very confusing. Ive even listen to multiple webinars. I would love someone to be able to translate that for me come in court. This bar is not alone. Virtually all borrowers share this concern and so do lenders. Borrowers and lenders see reports that congress will streamline forgiveness. Borrowers have delayed submitting applications hoping for that change. I urge quick authorization of a simplified forgiveness for smaller loads. This must be prescriptive or we wind up with another easy form which really is a making anything easier. Simplification would provide an enormous relief. Congress must also prescript of the clarify the lenders role in the forgiveness process. Identified by gao is a major problem. From the outset lenders believe we would to living assistant because we have a network and capacity the federal government did not happen. Other than providing the capital quickly, our role was to be limited. Only after we make millions of loans to banks learn we would have to verify the accuracy of the borrowers application and the forgiveness could hinge on them. Weve gone from being a conduit to being deeply involved in an illdefined process. At the heart of this issue is that the lender role as defined by the agencies create an inherent conflict of interest. Lenders lend to be we be the arbiter of you receive forgiveness from the government, especially when our decision determine whether our own funds will be reimbursed. To this and i urge you to clarify the lenders role in the forgiveness process as part of any streamlined application for forgiveness. I encourage you to include a strength to better defined lender responsibilities and verify borrower provided documents and certification. Lenders are on the front lines, and delivering this crucial aid fms fully understand our role to become triple helping our borrowers. Until the many issues are addressed many lenders will be reluctant to embrace or expand a new program. Most will agree we need to fully understand how to forgiveness process will work. How fda will honor its guarantees and with the guidance still to come will say if we can even consider participating in new programs or extensions. Otherwise we would not be able to get bar was the help they are seeking and deserve. Finally, a reminder of the best tool to assist americas Small Business longterm in good times and in bad has always been the regular seven a loan company the same temporary 7a in half the provision like waivers and guarantee percentages, lifted that we may, that it worked previously so well in tough times, we experienced before. They will work again. This means extending the section 711 12 debt relief payments with our hugely stabilizing and have been for the existing sba portfolios and also encourage new lending. One thing remains for these payments and i cannot think of a better tool to provide meaningful assistance to Small Business. Thank you so much and i look forward to your questions. Thank you so much for your statement. Appreciate it will turn it over to ms. Bonfig now, so youre recognize five minutes. Over to you. Good morning and thank you for giving the time to share my expense with the ppp forgiveness application process. I am the owner of little saints academy, a licensed Child Care Center in st. Joseph, minnesota. Im honored to have been chosen to speak to your committee today a map of myself, my lender, our local Small Business to Government Center and fellow Childcare Centers in minnesota. I also been working with the director of the minnesota Central Region to gather and share information as it becomes available. Our local office has been a vital resource for little saints over the last ten years and continues to have getting through this hardship with us. During the start of the pandemic Childcare Centers were asked to remain open and care for essential workers children. With no guidance are collaborative of childcare professionals join together seeking information create a safe space and make decisions as a group for the children we care for, our staff and our businesses. With little to no financial aid, sadly the Paycheck Protection Program became available and i was incredibly grateful to receive a forgivable loan. Through this process i have kept myself under group aware of changes. I create a spreadsheet for the group because it was a very lengthy forgiveness application process. I met with them via zoom to help make sense of it when i could barely make sense of it myself. Barely. I spent much of my time over the days and several months focus on the success of our pp loans and the forgiveness. Was incredibly timeconsuming and at the end of our covered period after funds were nearly exhausted, the forgiveness application finally appeared but with the new [inaudible] which was completely mindboggling because we had to be counted as fulltime equivalent on our loan application and that we couldnt count ourselves and fulltime safe harbor. Because of that i was unable to spin my entire loan in eight weeks. Extending two weeks of the payroll i could benefit from the entire loan but we did to findt about the 24 week extension option until we were in our eighth week and had exhausted most of our funds. After mike my cowbird. Id no choice but to lay let lf staff within certain of covid19 and the ability to stay open or even beat the equivalent safe harbor criteria, i was too afraid to choose the 24 week option. The rules have changed again by the sba is that getting my lenders need information to submit my application. I do understand the concept