Coronavirus Tracker: Associations Make Case for PPP Forgiveness
July 14, 2020
Current updates on association response to the global COVID-19 crisis, along with a roundup of conference, travel and business news and information.
A PPP Forgiveness Push
The Paycheck Protection Program (PPP) has been a lifesaver for many businesses - few nonprofits - over the past few months, but concerns about what might happen when it’s time to pay back the loans have caused some big headaches for many small businesses.
With this concern front of mind for the members of numerous associations, more than 130 groups have signed onto a letter making a case for streamlined process for those that received PPP loans. The groups are calling for the passage of The Paycheck Protection Program Small Business Forgiveness Act, a bipartisan bill introduced in the Senate recently that would allow PPP borrowers who received $150,000 or less to submit a one-page document asking for forgiveness.
This amount would cover most PP loan recipients, the letter notes—with the smallest 60 percent of loans averaging about $19,000, according to an AQN Strategies analysis. Part of the reason for the concern is that a more complicated loan forgiveness process could cost each business $2,000 to $4,000 along with dozens of hours of time, which would take a big chunk out of the original loan.
Please select this link to read the complete article from Associations Now.