U.S. Sens. Kevin Cramer, R-ND, Bob Menendez, D-NJ, Thom Tillis, R-NC, and Kyrsten Sinema, D-AZ, Senate Banking Committee members, introduced the Paycheck Protection Small Business Forgiveness Act, bipartisan legislation to streamline forgiveness of Paycheck Protection Program (PPP) loans for small businesses.
The proposed act includes forgiveness for PPP loans of $150,000 or less if the borrower submits a simple, one-page attestation form to the lender. It also ensures the lender will be held harmless from any enforcement action if the borrower’s attestation contained falsehoods.
Approximately 3.7 million PPP loans of $150,000 or less account for 85% of all PPP approved loans, but only 26% 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. The bipartisan legislation introduced today could save small businesses $7.4 billion and banks nearly $2 billion.
“We can avoid the burdensome cost of superfluous bureaucracy required to arrive at the foregone conclusion of loan forgiveness by implementing a few commonsense changes,” said Cramer. “The Paycheck Protection Small Business Forgiveness Act would give small businesses peace of mind by eliminating unnecessary bureaucratic requirements and simplifying the process for forgiving smaller loans. I urge my colleagues to support it and to consider including it in any future relief package.”
“Small businesses across New Jersey and the country are doing everything they can to withstand the economic impact of this unprecedented pandemic. And, for many of them, PPP loans have been their only available lifeline to keep their doors open. We want them to succeed. We want them to keep people employed and keep serving their communities,” said Menendez. “I would urge my colleagues on both sides of the aisle to support this common sense legislation.”
“The Paycheck Protection Program played a crucial role in supporting small businesses and saving jobs for hardworking North Carolinians,” said Tillis. “I am proud to co-introduce this bipartisan legislation that will help small businesses save thousands of dollars to ask for forgiveness for their PPP loan and use those funds to help re-start our economy.”
“Fully forgiving Arizona small businesses’ PPP loans provides needed economic certainty to local employers---which have suffered losses through no fault of their own---while protecting Arizonans’ jobs and paychecks,” said Sinema.
The legislation is supported by leading banking groups, as well as members of the agricultural community, who applauded its introduction.