Loeffler Cosponsors Bill to Simplify PPP Loan Forgiveness

Bill Would Streamline Forgiveness for Loans of Less than $150,000, Save Billions for Small Businesses

ATLANTA – U.S. Senator Kelly Loeffler (R-Ga.) cosponsored the Paycheck Protection Small Business Forgiveness Act to simplify Paycheck Protection Program (PPP) forgiveness for loans of less than $150,000.

The Paycheck Protection Small Business Forgiveness Act includes forgiveness for PPP loans of $150,000 or less if the borrower submits a simple, one-page attestation form to the lender. It also ensures the lender will not be liable for any falsehoods contained in the borrowers attestation.

“The vast majority of Paycheck Protection Program loans have gone to very small mom-and-pop businesses that are struggling to make ends meet as it is,” Loeffler said. “The last thing they need is to spend money and time on bureaucratic paperwork to receive the loan forgiveness Congress designed the program to provide. This commonsense bill will make it easier for these small businesses to apply for forgiveness so they can continue to recover and emerge from the pandemic stronger than before.”

Background

There are approximately 3.7 million PPP loans of $150,000 or less. These account for 85 percent of all PPP approved loans but only 26 percent of the PPP funds delivered. The cost of applying for forgiveness for a PPP loan of this size is $2,000 for a small business and $500 for the lender. The bipartisan legislation would save small businesses an estimated $7.4 billion and banks nearly $2 billion.