WASHINGTON– U.S. Senator John Boozman (R-AR) continued his efforts to make the Paycheck Protection Program (PPP) more flexible by joining a bipartisan effort to streamline forgiveness of the program’s smaller loans.
Boozman cosponsored the Paycheck Protection Small Business Forgiveness Act, introduced by Sens. Kevin Cramer (R-ND) and Bob Menendez (D-NJ). The bill would make it easier for small businesses to get PPP loans of $150,000 or less forgiven through a simple, one-page form.
“The PPP has been a critical lifeline for small businesses and has helped millions of Americans continue to receive their paychecks during the COVID-19 crisis. However, the bureaucratic hurdles small business owners need to clear to prove their eligibility for loan forgiveness are overly burdensome for the 85 percent of recipients who received loans of $150,000 or less. Simplifying the loan forgiveness process for the smallest borrowers will minimize the burden of extensive paperwork and allow small businesses to focus on retaining jobs and growing our economy,” said Boozman.
Approximately 3.7 million PPP loans of $150,000 or less have been granted, which accounts for 85 percent of the program’s approved loans. The cost of applying for forgiveness for a PPP loan of this size is $2,000 for the small business and $500 for the lender. This bipartisan legislation could save small businesses $7.4 billion and banks nearly $2 billion.