CBA Writes Senate Small Business Committee Prior to PPP Hearing
CBA Writes Senate Small Business Committee Prior to PPP Hearing
In advance of hearing, CBA reiterates call for automatic forgiveness for smallest PPP recipients
WASHINGTON – In advance of the Senate Small Business Committee hearing with Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza examining the implementation of the Paycheck Protection Program, the Consumer Bankers Association wrote the committee urging Congress to quickly pass legislation that would forgive PPP loans of less than $150,000.
“The recently released forgiveness guidance from SBA and Treasury will make the forgiveness process unnecessarily burdensome for many businesses, particularly the smallest of small businesses without the administrative support needed to complete the form,” CBA President and CEO Richard Hunt said. “Small businesses and their employees are the backbone of our nation’s economy and communities. Their time and resources would be better focused on getting the economy safely back up and running, not processing overly complicated documentation that was not required by legislation and released late in the PPP loan process.”
This $150,000 threshold would account for 85 percent of total PPP recipients, but less than 26 percent of PPP loan dollars leaving the largest loan borrowers to complete the full forgiveness documentation.
Lenders would continue to meet the PPP requirements provided by SBA for these loans. According to independent analysis from AQN Strategies, these businesses could save more than $7 billion dollars and hours of paperwork.
CBA, along with the Bank Policy Institute, last week wrote Congress requesting automatic forgiveness legislation. A full copy of the associations’ letter is available here. The AQN Strategies analysis can be found here.
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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.
