Contact Your Members of Congress and Urge Them to Include Automatic Forgiveness for Paycheck Protection Program Loans of $150,000 or Less in the Next COVID-19 Relief Legislation
July 22, 2020
Congress is considering legislation that would give businesses additional relief from the COVID-19 pandemic’s damage to the economy. On the wish lists of many small businesses is the provision allowing the Small Business Administration to forgive Paycheck Protection Program (PPP) loans in amounts less than $150,000.
This week the NPA joined a coalition of other national trade associations to urge Congress to enact this automatic forgiveness of small PPP loans. It just makes good economic and business sense to include this measure in the COVID-19 relief package now being negotiated because:
- Completing even the shortened loan forgiveness form released in June will take PPP borrowers considerable time;
- Once borrowers complete the forgiveness forms, they still have to wait for their PPP lenders to process and submit their applications to the SBA;
- Lenders will spend additional staff time and resources to ensure that borrowers correctly completed the forgiveness application forms, including all required certifications;
- Once the lender submits the completed forms to the SBA, they must await the SBA’s approval of each forgiveness application;
- The entire process could take months, not weeks – leaving the PPP borrowers with the anxiety of not knowing whether their loans will be forgiven 100%, in part, or not at all, while trying to focus on recovery and their business’ growth; and
- While forgiveness applications are pending, lenders may be hesitant to make new loans to PPP borrowers.
Please call the Washington, D.C. offices of your Senators and Representatives to ask for their support of the PPP forgiveness bills S. 4117, “The Paycheck Protection Program Small Business Forgiveness Act”, sponsored by Senators Kevin Cramer (North Dakota), Bob Menendez (New Jersey), Thom Tillis (North Carolina) and Kyrsten Sinema (Arizona), and a companion bill in the House sponsored by Representatives Fred Upton (Michigan) and Chrissy Houlahan (Pennsylvania). To locate the telephone numbers of your Members of Congress visit www.senate.gov and search under the tab “Senators”, and visit www.house.gov to find the Representative for your District. Be certain to mention that receiving a PPP loan helped you keep your business open and your employees on the payroll.
Members should consult their own lawyers for legal advice.