SBA creates streamlined loan forgiveness application for Paycheck Protection Program
The U.S. Small Business Administration (SBA) has released a streamlined loan forgiveness application for Paycheck Protection Program loans totaling $50,000 or less.
The Paycheck Protection Program was a pandemic relief measure intended to help small businesses and their employees stay afloat during a time of lockdowns and restrictions.
Prior to the announcement, Congressman Fred Keller held a virtual roundtable meeting with bankers across Pennsylvania's 12th Congressional District to hear about concerns that small businesses and other borrowers had regarding Paycheck Protection Program loan forgiveness. The program has been tremendously helpful for many small businesses and their employees, but the bankers noted that the loan forgiveness application had been slow and convoluted.
Congress had intended the loans to be forgivable as long as borrowers used the funds to keep workers on payroll and other approved uses.
On October 9, the SBA announced the new streamlined forgiveness process for borrowers with loans under $50,000. Congressman Keller has also co-sponsored legislation intended to streamline forgiveness for loans of $150,000 or less, but the bill has not yet been approved.
The new application, located here, is only two pages long and will significantly simplify the loan forgiveness process for two thirds of all Paycheck Protection Program loan recipients.
Following the release of the new application, Congressman Fred Keller made the following statement:
“This announcement represents a huge victory for our small businesses and for the millions of American families fighting to sustain their livelihoods. The Paycheck Protection Program has been instrumental to restoring strength to our economy, and the streamlined forgiveness application released yesterday will go even further in ensuring every business has the resources they need to move forward as we enter the next stage of our economic comeback.
I commend President Donald Trump and Administrator Carranza for heeding the calls of small businesses and community banks across the country. While this is an important first step, Congress must act swiftly to reauthorize and extend the PPP and drive out the remaining $138 billion that has already been approved so that we can continue relief efforts to help more Americans in need.”