Bill would simplify forgiveness for PPP loans under $150K

June 30, 2020

A bill from Sen. Kevin Cramer (R-N.D.) would simplify loan forgiveness from the Paycheck Protection Program (PPP) and has CUNA’s full support. Cramer introduced the Paycheck Protection Program Small Business Forgiveness Act Tuesday, with Sens. Bob Menendez (D-N.J.), Thom Tillis (R-N.C.) and Kyrsten Sinema (D-Ariz.).

“America’s credit unions wholeheartedly support Sen. Cramer’s Paycheck Protection Small Business Forgiveness Act,” said CUNA President/CEO Jim Nussle. “This bill will allow America’s small business owners and Main Street financial institutions to remain focused on serving their communities rather than on jumping through burdensome regulatory hurdles.”

Specifically, the bill:

  • Simplifies forgiveness for covered PPP loans of less than $150,000, if the borrower submits a simple, one-page attestation form to the lender.
  • States the lender shall be held harmless from any enforcement action if the borrower’s attestation contained any falsehoods.
  • States the borrower attestation will include a means by which a borrower, on a voluntary basis, will provide the following demographic information: sex; race; ethnicity; and veteran status of owner.  

According to the Small Business Administration, 3.7 million PPP loans were $150,000 or less. This accounts for approximately 85% of all PPP loans, but only 26% of the program’s dollars.