Last week we told you about more than $1.15 billion in funding that went to Idaho businesses as part of the Small Business Administration’s Paycheck Protection Program. Now, a large number of businesses could see a big change to the program.
Politico reports a new piece of legislation would simplify the forgiveness process for all loans of less than $150,000. The PPP program gave businesses of up to 500 employees an opportunity to take out a low-interest loan – with the promise that some or all of that could be “forgiven,” essentially turning it into a grant. The money was aimed at protecting jobs in the wake of the COVID-19 pandemic.
Now, legislation co-sponsored by Republican Sen. Kevin Cramer of North Dakota and Democratic Sen. Bob Menendez of New Jersey, with co-sponsorship from Banking Committee chair Sen. Mike Crapo would tweak the requirements for forgiveness. Instead of a detailed form and long process, businesses that received up to $150,000 would simply fill out a one-page form stating they used the money as required.
To date, the SBA handed out more than 4.9 million loans – with 86% going to businesses receiving less than $150,000 according to Politico. The remainder of the loans would still go through an extensive process and auditing to get government forgiveness.