Business, Lender Coalition Pushes for Streamlined PPP Forgiveness

September 17, 2020
Nick Simpson

 

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:

  • Habitat for Humanity International
  • National Council of Nonprofits
  • American Hotel & Lodging Association
  • Asian American Hotel Owners Association
  • National Association of Chain Drug Stores
  • National Association of Federally-Insured Credit Unions
  • National Association of Realtors
  • National Community Pharmacists Association
  • National Council of Chain Restaurants
  • National Restaurant Association
  • National Retail Federation
  • NFIB
  • Pennsylvania Food Merchants Association U.S. Chamber of Commerce
  • U.S. Hispanic Chamber of Commerce
  • United Veterinary Services Association
  • Wine & Spirits Wholesalers of America
  • Women Impacting Public Policy (WIPP)

Financial Services Associations:

  • Consumer Bankers Association
  • American Bankers Association
  • American Land Title Association
  • Bank Policy Institute
  • Credit Union National Association
  • Farm Credit Council
  • Financial Services Forum
  • Independent Community Bankers of America
  • Mid-Size Bank Coalition of America National Bankers Association
  • Texas Bankers Association

 

 

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.