Business, Lender Coalition Pushes for Streamlined PPP Forgiveness

Business, Lender Coalition Pushes for Streamlined PPP Forgiveness
WASHINGTON – A coalition of more than 100 trade associations representing millions of small businesses and financial institutions of all sizes today sent a letter to Congressional Leadership calling for passage of bipartisan legislation to streamline the Paycheck Protection Program forgiveness process for the smallest loans.
“We ask that Congress immediately pass these much-needed bipartisan pieces of legislation, supported by a third of the Senate and 77 members of the House of Representatives, that would streamline the forgiveness process for mom-and-pop businesses who received Paycheck Protection Program loans during these unprecedented times,” the associations wrote. “Expediting the loan forgiveness process for many of these hard-hit businesses would save more than $7 billion and hours of paperwork.”
The legislation, S. 4117 and H.R. 7777 is sponsored by Sens. Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.) and Reps. Chrissy Houlahan (D-Penn.) and Fred Upton (R-Mich.). The bills call for streamlined forgiveness of PPP loans less than $150,000 if the borrower answers a simple, one-question attestation the funds were used in accordance to PPP guidelines. Nothing in the legislation prevents the audit of PPP loans less than $150,000 for fraud.
Associations joining the CBA-led coalition include:
Nonprofit & Business Groups:
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Financial Services Associations:
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The letter and full list of association is available here.
Independent analysis by AQN Strategies anticipates the combined small business resource requirements of time and/or third-party expenses could represent an effective cost of $2,000-$4,000 for each business that applies for forgiveness, requiring 20-100 hours of time. With an average loan size of less than $19,000 for the smallest 60 percent of loans, this estimate would represent up to a fifth of the loan amount.
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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.