Two major banking industry trade groups have urged federal lawmakers to guarantee automatic forgiveness for Paycheck Protection Program loans under $150,000, saying this would cut down on paperwork and save billions for the "nation's smallest small businesses."
When these businesses complete complicated loan forgiveness forms in order to obtain relief, they end up wasting over 70 million hours and more than $7 billion that could be better used to grow the businesses, the Consumer Bankers Association and Bank Policy Institute wrote in a letter Tuesday to the leaders of the Small Business Committees in both the House and Senate.
"Their time and resources would be better focused on getting the economy safely back up and running, not processing burdensome paperwork," CBA chief Richard Hunt said in a statement.
The $150,000 threshold would cover the vast majority of businesses receiving PPP loans, according to the letter, but would impact less than 30% of the funding. To read more, click here.
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