A coalition of trade groups, including the Credit Union National Association and the National Association of Federally-Insured Credit Unions, is pushing Congress to pass legislation that would allow businesses receiving loans of $150,000 or less from the Paycheck Protection Program to have their loans forgiven by submitting a one-page form.
S. 4117, introduced by Sen. Kevin Cramer (R-N.D.) and a bipartisan group of Senate Banking Committee members, also would hold lenders harmless if a borrower’s one-page form contains falsehoods.
“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 coalition of groups ranging from the National Beer Wholesalers Association to the Association of Kentucky Fried Chicken Franchisees, wrote in a letter to congressional leaders.
The groups said that PPP loans of $150,000 and less account for 86% of total loan recipients, but less than 27% of all loan funds.
Cramer said that the cost of applying for loans of this size cost small businesses $2,000 and lenders $500. He said that the bill could save small businesses $7.4 billion and banks nearly $2 billion.
The bill could be attached to the next coronavirus economic stimulus legislation. The House already has passed its next bill, but Senate Majority Leader Mitch McConnell (R-Ky.) has said the bill is not acceptable. The Senate is expected to begin work on its own bill. Congressional leaders have said they want the next stimulus bill to be enacted before Congress leaves for its August recess on Aug. 7.