Arizona Non-Profits Support Sinema’s Bipartisan Bill Forgiving Smaller PPP Loans

Aug 26, 2020

Alliance of Arizona Non-Profits endorsed Sinema’s Paycheck Protection Small Business Forgiveness Act to fully forgive PPP loans under $150,000

WASHINGTON – The Alliance of Arizona Non-Profits endorsed Arizona senior Senator Kyrsten Sinema’s bipartisan Paycheck Protection Small Business Forgiveness Act. Sinema’s legislation fully forgives all Paycheck Protection Program (PPP) loans less than $150,000.
“Fully forgiving Arizona non-profits’ PPP loans provides economic certainty to organizations serving on the front lines of the coronavirus pandemic so they can continue assisting Arizonans with food, shelter, and health care,” said Sinema.
“Quite simply, every dollar received from PPP loans was put to work; every dollar diverted to pay for the processing of forgiveness applications is money not spent to support the people in our communities, your constituents. We believe (Senator Sinema’s) bill will enable charitable organizations to keep their focus where it is needed most right now, delivering services and helping to restore the economies in our states,” wrote the Alliance of Arizona Non-Profits. 

Sinema’s bipartisan Paycheck Protection Small Business Forgiveness Act provides for the full forgiveness of all PPP loans for which the principal amount was not greater than $150,000, as long as the borrower submits a one-page form that attests that the recipient complied with the requirements of the Paycheck Protection Program as described in the CARES Act. It is estimated that Sinema’s bill will cover 85 percent of borrowers, but only 26 percent of PPP funds obligated. This bill works to relieve paperwork burdens, continues to provide avenues for enforcement action against those engaged in fraud, and allows the SBA to focus their compliance resources on higher value loans.
Following recent calls from Sinema, the Small Business Administration agreed to simplify its Paycheck Protection Program (PPP) forgiveness application to help Arizona small businesses remain viable and keep Arizonans employed during the COVID-19 pandemic.
In the recent Congressionally-approved coronavirus package, Sinema helped secure $310 billion for PPP loans, $60 billion for smaller, disadvantaged businesses, $60 billion for EIDL and grants, $75 billion for health care providers, and $25 billion for testing, including $11 billion directly to states.