Under Sinema’s bipartisan bill, PPP loans under $150,000 will be fully forgiven
WASHINGTON – Arizona senior Senator Kyrsten Sinema introduced the bipartisan Paycheck Protection Small Business Forgiveness Act with Republican Senator Kevin Cramer (ND). The Senators’ legislation fully forgives all Paycheck Protection Program (PPP) loans less than $150,000.
“Fully forgiving Arizona small businesses’ PPP loans provides needed economic certainty to local employers—which have suffered losses through no fault of their own—while protecting Arizonans’ jobs and paychecks,” said Sinema.
“Financial Innovation Now commends Senators Cramer and Sinema for introducing the Paycheck Protection Small Business Forgiveness Act. FIN member companies are proud to have facilitated thousands of PPP loans to truly small businesses that are suffering hardest during the Covid-19 pandemic. As these businesses struggle with unprecedented challenges, the last thing they need is more burdensome paperwork. The Paycheck Protection Small Business Forgiveness Act will enable America’s small businesses to concentrate on surviving. FIN urges Congress to pass this legislation as soon as possible.”
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.