Small Business, Lender Associations Call for Streamlined PPP Forgiveness

WASHINGTON, July 10 -- The Consumer Bankers Association issued the following news release:

The Consumer Bankers Association, International Franchise Association and U.S. Chamber of Commerce led a coalition of more than 130 trade groups representing small business borrowers and lenders in a letter to Congressional Leaders advocating for the passage of bipartisan legislation introduced by Sens. Kevin Cramer (R-N.D.), Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.) to streamline Paycheck Protection Program forgiveness for the smallest borrowers.

The bipartisan legislation calls for streamlined forgiveness of PPP loans less than $150,000 if the borrower answers a simple, one-question attestation the funds were used in accordance to PPP guidelines to retain employees. The simplified forgiveness could collectively save the smallest small businesses owners more than $7 billion dollars and hours of paperwork.

"This bipartisan legislation would ensure our nation's small business owners can focus their time, energy, and resources back into their business and communities instead of allocating significant time and resources into completing complex forgiveness forms," the associations wrote.

The coalition letter notes independent analysis by AQN Strategies anticipates the combined small business resource requirements of time and/or third-party expenses could represent an effective cost of $2,000-$4,000 for each business that applies for forgiveness, requiring 20-100 hours of time.

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