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NAFCU urges action on PPP forgiveness as House subcommittee reviews forgiveness process
The House Small Business Committee’s Subcommittee on Economic Growth, Tax, and Capital Access heard concerns and problems with the Small Business Administration’s (SBA) paycheck protection program (PPP) loan forgiveness process at a hearing examining PPP forgiveness on Friday. Three small business representatives and one regional bank lender witness discussed how the SBA’s incremental rollout of guidance has added to the confusion already present within the loan forgiveness process.
Of note, one witness, a small business owner from Minnesota, provided insight into the limits present in the EZ version of the application and suggested that she found roughly the same amount of work was needed to complete both the original and EZ versions of the forgiveness application.
Additionally, all witnesses expressed general support for legislation to extend the PPP program, allow certain businesses to take a second loan, and simplify the forgiveness process for loans under $150,000. However, Lynn Ozer, President of SBA Lending at Fulton Bank, suggested that many lenders may be hesitant to continue PPP lending unless the process is simplified and there is a stronger hold harmless provision for lenders.
Ahead of the hearing, NAFCU Vice President of Legislative Affairs Brad Thaler called on the subcommittee to consider the concerns of credit unions and urged action and support of a simplified loan forgiveness process, such as what is proposed in H.R. 7777, the Paycheck Protection Small Business Forgiveness Act.
The association will continue to update members on any new information regarding the program and loan forgiveness. For more on the program, access NAFCU’s PPP FAQs.