Forgiveness begins for the Paycheck Protection Program
BISMARCK, N.D. (KFYR) - More than 4.8 million small businesses received a Paycheck Protection Program loan, amounting to $519 billion in federal money. There are still $134 billion to be allocated, but Tuesday was the last day to apply.
The program's popularity stemmed from its promise: total loan forgiveness. Now, some lawmakers are trying to make it easier for that to happen. The Senate Banking Committee introduced a bill that would streamline forgiveness for smaller borrowers, those with loans of $150,000 or less.
“My bill would give small businesses peace of mind by eliminating the unnecessary bureaucratic requirements and simplify the process for forgiving smaller loans,” said Sen. Kevin Cramer, R-N.D.
The Small Business Administration requires proof the loan was used on certain practices, specifically payroll expenses. But the potential bill would drop the requirements for smaller borrowers, who make up 85 percent of those who received a loan.
Both small businesses and lenders would save money on the cost of applying for forgiveness if the bill were to pass.
Copyright 2020 KFYR. All rights reserved.