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09/27/2020
Banks, SMBs Push For Simplified PPP Loan Forgiveness
PYMNTS.com
Small- to medium-sized businesses (SMBs) are reporting difficulty with the forgiveness aspect of the Paycheck Protection Program (PPP) as that feature opens up, according to CNBC.
The rules behind forgiveness for the PPP loans dictate that if an SMB used the money correctly, with 60 percent going toward payroll and 40 percent to other allowable expenses, the SMB won't have to pay back the loan.
But advocates for SMBs are petitioning Congress to streamline the process. For instance, the Consumer Bankers Association reported that as many as 80 percent of forgiveness applications need follow-ups to help clear up errors or fill in missing information. And a report from the Government Accountability Office (GAO) found that "applying for loan forgiveness is more time consuming than applying for the PPP loan itself," CNBC reported.
Meanwhile, the EZ form, purported to be a simplified version of the process, isn't that easy either, according to CNBC. Trade groups have asked Congress for legislation to simplify the forgiveness process for loans under $150,000, which make up the majority.
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