WASHINGTON–The Paycheck Protection Small Business Forgiveness Act has been introduced in the Senate. The bipartisan legislation, as the name implies, seeks to streamline forgiveness of Paycheck Protection Program (PPP) loans for small businesses and has the backing of both credit union trade groups, as well as other groups, including the agricultural community.
The bill was introduced in the Senate by Sens. Kevin Cramer (R-ND), Bob Menendez (D-NJ), Thom Tillis (R-NC) and Kyrsten Sinema (D-AZ).
“America’s credit unions wholeheartedly support Sen. Cramer’s Paycheck Protection Small Business Forgiveness Act,” said CUNA President and CEO Jim Nussle. “This bill will allow America’s small business owners and Main Street financial institutions to remain focused on serving their communities rather than on jumping through burdensome regulatory hurdles.”
Coalition Sends Letter
Earlier, CUNA co-signed a letter with the National Governors’ Association and other coalition group members of states, cities, companies, trade groups and unions urging the Senate to include “robust and direct stimulus” for state and local governments in the next coronavirus relief bill.
CUNA noted the letter comes as the Senate prepares to move forward next month with the long-awaited follow-up to the $2.1 trillion CARES Act, which President Donald Trump signed into law more than three months ago.
“As we move closer to the end of the budget year, furloughs and job cuts are on the table for many states and localities,” the letter states. “These jobs losses not only affect the provision of government services, but also add to state unemployment. The damage will get far worse without federal assistance, forcing drastic cuts that will further delay and cancel infrastructure projects, as at least 26 states have announced construction delays for transportation projects.”
In conjunction with an oversight hearing by the House Financial Services Committee on oversight of the Treasury Department's and Federal Reserve's Pandemic Response, CUNA also submitted a letter for the record calling for additional actions that would continue to help individuals and businesses affected by the pandemic.
NAFCU Response
In response to the new Senate bill, NAFCU CEO Dan Berger also issued a statement saying, “We thank Senators Kevin Cramer, Kyrsten Sinema, Thom Tillis and Robert Menendez for introducing legislation that would save small businesses both time and money as they recover from the coronavirus pandemic. With 85% of PPP loan recipients owing less than $150,000, automatic forgiveness would allow the overwhelming majority of small businesses to focus on reopening their storefronts, hiring workers and serving community needs – instead of processing complex and burdensome paperwork. Small businesses are the lifeblood of our economy and their success during this difficult time will help support our nation’s recovery efforts. NAFCU wholeheartedly supports passage of this bill.”