The U.S. Small Business Administration, in consultation with the Treasury Department released a simpler loan forgiveness application late last week for Paycheck Protection Program (PPP) loans of $50,000 or less.
This decision could affect a little more than 32,000 PPP loans granted in Puerto Rico, according to SBA data released earlier this year.
This action streamlines the PPP forgiveness process to provide financial and administrative relief to the smallest businesses and self-employed individuals, while also “ensuring sound stewardship of taxpayer dollars,” officials from both federal agencies said in a joint statement.
“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” said U.S. Treasury Secretary Steven T. Mnuchin.
“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” he continued.
“We’re committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process,” he said.
SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
“The Paycheck Protection Program has been an overwhelming success and served as a historic lifeline to America’s hurting small businesses and tens of millions of workers,” said SBA Administrator Jovita Carranza.
“The new form demonstrates our relentless commitment to using every tool in our toolbelt to help small businesses and the banks that have participated in this program,” she said. “We’re continuing to ensure that small businesses are supported as they recover.”
SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for borrowers on Oct. 2, 2020.