October 12, 2020

Congressional Action Still Needed for Loan Forgiveness Association Tells Federal Officials

The Small Business Administration (SBA) and the Treasury Department released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less—an action that is designed to streamline the process for small businesses and provide much needed financial and administrative relief.

“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” said Secretary Steve Mnuchin. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”

The SBA and Treasury have also eased the burden for PPP lenders, allowing lenders to process forgiveness applications more swiftly. However, according to President and CEO of the Consumer Bankers Association Richard Hunt, the streamlined effort will not be enough to help mom-and-pop businesses and argues that Congressional action is still needed to protect these small businesses.

“Congress can solve this problem tomorrow 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," Hunt stated.