TBA Urges Support for Senate Bill to Simplify PPP Forgiveness
Today TBA applauded the bipartisan introduction of the Paycheck Protection Small Business Forgiveness Act in the U.S. Senate.
If approved, the legislation would forgive PPP small business loans of $150,000 and under with a simple one-page attestation. The bill further mandates that SBA produce the one-page form “not later than 7 days after the date of enactment.”
“Only in Washington does a three-page form require four pages of instructions and calculators, but that is what the current PPP forgiveness process looks like for small business owners,” said TBA President and CEO Chris Furlow. “The Paycheck Protection Small Business Forgiveness Act will give small businesses “PPP Freedom” so they can focus on their customers and employees, not on paperwork,” he added.
The bill also includes a hold harmless provision for lenders “for any falsehoods contained in the attestation” provided by the borrower.
“The approximately 3.7 million PPP loans of $150,000 or less account for 85 percent of all PPP approved loans but only 26 percent of the PPP funds delivered. The cost of applying for forgiveness for a PPP loan of this size is $2,000 for the small business and $500 for the lender,” according to the co-sponsors including Sen. Kevin Cramer (R-ND), Sen. Robert Menendez (D-NJ), Sen. Thom Tillis (R-NC) and Sen. Kyrsten Sinema (D-AZ). They said that the bill could save small businesses $7.4 billion and banks nearly $2 billion.
Read the bill text HERE.