Business-Lender Coalition Calls for Streamlined PPP Forgiveness

November 19, 2020
Nick Simpson

Business-Lender Coalition Calls for Streamlined PPP Forgiveness

Streamlined forgiveness would be equivalent of $7 billion in economic aid to small businesses

 

WASHINGTON – A coalition of more than 100 trade associations representing thousands of businesses, nonprofits and financial institutions of all sizes today again called on Congress to streamline the overly burdensome Paycheck Protection Program forgiveness process for the nation’s smallest businesses.

 

The coalition wrote, “Businesses have been patiently awaiting for Congress to act, hoping that an improved and streamlined forgiveness process will ensure they can focus their time, energy, and resources back into their business and communities instead of allocating significant time and expense into completing complex forgiveness forms.

 

“Congress can solve this problem and inject the equivalent of $7 billion into our economy by passing bipartisan, common-sense legislation to streamline PPP forgiveness for small businesses on Main Street in communities across the country.”

 

The Consumer Bankers Association led coalition is supporting S. 4117, The Paycheck Protection Program Small Business Forgiveness Act, sponsored by Senators Kevin Cramer, Bob Menendez, Thom Tillis and Kyrsten Sinema and H.R. 7777, The Paycheck Protection Small Business Forgiveness Act, sponsored by Reps. Chrissy Houlahan and Fred Upton. This bipartisan and bicameral legislation would reduce compliance costs by streamlining the forgiveness process for mom-and-pop businesses who received PPP.

 

The bipartisan legislation would streamline forgiveness for PPP loans less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. The legislation, however, would not prevent the audit of these loans for fraud.

 

According to independent analysis by AQN Strategies, simplified or automatic forgiveness could collectively save the smallest small businesses owners more than $7 billion dollars and hours of paperwork.

 

A copy of the letter is available here, along with participating associations which include:

 

  • Consumer Bankers Association
  • American Bankers Association
  • American Farm Bureau Federation
  • American Hotel & Lodging Association
  • American Land Title Association
  • Bank Policy Institute
  • Credit Union National Association
  • Financial Services Forum
  • Habitat for Humanity International
  • Independent Community Bankers of America
  • Mid-Size Bank Coalition of America
  • National Association of Federally-Insured Credit Unions
  • National Association of Home Builders
  • National Association of Chain Drug Stores
  • National Association of Realtors
  • National Restaurant Association National Retail Federation
  • National Bankers Association
  • Small Business Roundtable
  • U.S. Black Chambers
  • U.S. Chamber of Commerce
  • United States Hispanic Chamber of Commerce

 

 

 

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About the Consumer Bankers Association:

The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.