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Monday, 13 July 2020 20:19

SEMA Supports Legislation to Forgive All PPP Loans Less Than $150,000

SEMA joined with dozens of other trade associations in urging the U.S. Congress to pass legislation to forgive all PPP loans that are less than $150,000.

The groups sent a letter to leaders of the House and Senate Small Business Committees requesting immediate passage of “The Paycheck Protection Program Small Business Forgiveness Act” (S. 4117).

 

To date, more than 85% of the PPP loans provided to small businesses are less than $150,000. Under the current program, the loan has restrictions on how monies are spent, including a requirement that 60% be spent on payroll cost, and company officials must then spend many hours completing paperwork to document the spending.

 

The proposed legislation would instead simply require borrowers to submit a one-page forgiveness document.

 

The U.S. Congress is expected to consider another COVID-19 stimulus package later in July. SEMA is urging that the PPP loan forgiveness legislation be enacted at that time, either as a stand-alone bill or as part of the stimulus package.

 

For more information, contact Stuart Gosswein at stuartg@sema.org.

 

We thank SEMA for reprint permission. 

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