SBA, Treasury announce ‘simpler’ PPP forgiveness process
October 13, 2020
•Land Line Staff
The U.S. Small Business Administration and the U.S. Treasury Department are trying to simplify the forgiveness application process for Paycheck Protection Program loans of $50,000 or less.
Announced this past week, the changes are aimed at streamlining the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses.
“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” Treasury Secretary Steven Mnuchin said in a news release. “(This) action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly. We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”
According to the news release, the burden has also been eased on PPP lenders, allowing them to process forgiveness applications faster.
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on Oct. 2.
An example of the SBA’s new PPP loan forgiveness application can be found here.
Any questions about loan forgiveness and your specific case should be directed to your lender. More information can be found here.
OOIDA has been working to make sure that small-business truckers have the ability to take advantage of SBA PPP loans and other COVID-19 relief funds.
In a letter sent in September to the Small Business Committee leaders in the House and Senate, OOIDA supported efforts for additional assistance during the COVID-19 pandemic but also stressed concerns about how proposed eligibility requirements could affect truck drivers.
“Recent proposals to provide a second round of PPP loans have included a requirement that a business experience decline in its gross receipts to be eligible,” OOIDA wrote in the Sept. 21 letter signed by President and CEO Todd Spencer. “Congress must ensure that deserving small businesses are able to easily demonstrate this criterion. In particular, we ask that you make clear what documentation is necessary to meet this requirement.”
OOIDA said it understands Congress’ desire to limit the second wave of PPP loans to businesses that have been struggling but also wants to make sure that deserving self-employed workers, including owner-operators, aren’t blocked from receiving assistance because of difficulties providing the necessary documentation.
“Small-business truckers keep necessary records to stay compliant with existing regulations and requirements, such as tax filings, but these may not be useful to demonstrate 2020 gross receipts,” OOIDA wrote. “We represent men and women who run their business out of their truck or home. Some of these sole proprietors or self-employed individuals keep records on paper tablets or simple computer spreadsheets. We have concerns that lenders or the government may question the validity of these records.” LL