By Alan Wolf, YSN
The U.S. Small Business Administration is giving an early Christmas present to Paycheck Protection Plan customers who borrowed $50,000 or less.
According to newly loosened rules set by the SBA and the Treasury Department, forgiveness of these smaller PPP loans is no longer forfeited by reductions in salaries or staff, and the process of applying for forgiveness has been streamlined with a simpler application form and fewer burdens on lenders.
Click here to view the simpler loan forgiveness application.
Click here to view the instructions for completing the simpler loan forgiveness application.
“We are committed to making the PPP forgiveness process as simple as possible,” Treasury Secretary Steve Mnuchin said.
The announcement follows reports of a lengthy review process and a laggardness by lenders that has limited the flow of submissions to a trickle. According to SBA testimony reported by Inc., the agency had still only received forgiveness applications for about 2 percent of all PPP loans fully six weeks after its online forgiveness portal opened on Aug. 10.
News of small-loan forgiveness and an easier application process was welcomed by the Home Furnishings Association (HFA), a BrandSource affiliate. Writing on the trade group’s blog site, government relations staff member Doug Clark said, “It makes sense to forgive these smaller loans and eliminate the time-consuming paperwork required by the forgiveness application process. Doing so would help small businesses and lenders [and] would also free resources for banks and the SBA to focus attention on larger loans.”
Though pleased with the new SBA rules, HFA is pushing for automatic forgiveness of all PPP loans of $150,000 or less. A proposed “Paycheck Protection Program Small Business Forgiveness Act” would do just that, and House and Senate versions of the bill have drawn strong bipartisan support. But to date the measure has not been allowed votes amid ongoing Congressional wrangling over the next possible coronavirus stimulus package, Clark said.