Agricultural News
Lucas, Colleagues Introduce Bipartisan Paycheck Protection Small Business Forgiveness Act
Tue, 28 Jul 2020 08:03:45 CDT
Congressman Frank Lucas (OK-03) joined U.S. Representatives Fred Upton (R-MI) and Chrissy Houlahan (D-PA) in introducing bipartisan legislation to expedite forgiveness for Paycheck Protection Program (PPP) loans of $150,000 or less. The Paycheck Protection Small Business Forgiveness Act would streamline for process for certifying compliance with PPP requirements and expedite the loan forgiveness process for small businesses.
"There's no question about it, the Paycheck Protection Program has been a lifeline for Oklahoma's small businesses- more than 127,000 jobs in Oklahoma's Third District. The Paycheck Protection Small Business Forgiveness Act would forgive Paycheck Protection Program loans under $150,000, helping Oklahoma's small businesses navigate the forgiveness process," said Congressman Lucas. "These loans represent more than 90 percent of the loans in the Third District of Oklahoma, but only about 30 percent of the total dollar value. As Congress continues to provide additional relief to those hit hardest by COVID-19, I will continue to work with my fellow colleagues to help remove the shroud of uncertainty for small businesses as we weather this health crisis."
"The Paycheck Protection Program has certainly been a lifeline for many small businesses and employees across southwest Michigan and around the country. Our office has worked hand-in-hand on the PPP with a number of small businesses and lenders to help protect countless jobs. In Michigan alone, 121,000 loans totaling more than $16 billion have helped keep 1.5 million employees on the payroll," Upton said. "But, as much as we all wanted the COVID-19 crisis over by Easter, that was not the reality, as the country, workers, and our small businesses continue to face a number of challenges. I look forward to working with my colleagues on both sides of the aisle and the Senate to get this done."
"In order to successfully rebuild our economy, Congress and the Administration need to be doing everything we can to help our small businesses weather this COVID-19 crisis," Houlahan said. "In our office, we have worked alongside our small business community to help secure loans, increase access to capital for minority- and women-owned businesses, and improve transparency into the Paycheck Protection Program. I'm proud to partner with Representative Upton to help the more than 15,000 small businesses in my community who have received loans of $150,000 or less quickly and effectively navigate the forgiveness process. I will continue to reach across the aisle to support our small businesses in our community, Commonwealth and country during these uncertain times."
According to SBA data, approximately 86% of the businesses currently participating in the PPP have received loans of $150,000 or less, indicating that this program is reaching many of our smallest businesses. Current PPP authorities allow small businesses to apply for full or partial forgiveness of their loans, provided they used the funds appropriately.
The Paycheck Protection Small Business Forgiveness Act would:
• Apply only to recipients of PPP loans of $150,000 or less.
• Require SBA to quickly create a one-page online or paper form for eligible small businesses to certify to their lender that they have met the requirements of the program.
• Ensure that the form includes an optional checklist for the small business owner to indicate whether they have spent 60 percent or more on payroll costs or less than 60 percent due to issues with rehiring (pursuant to the PPP Flexibility Act).
• Require that the form include a way for borrowers to submit demographic information, at their discretion.
• Prohibit Members of Congress, their families, and senior Executive Branch members from benefiting from this "expedited forgiveness" mechanism. Such businesses would remain eligible for forgiveness under the original requirements of the program.
• Include an optional mechanism for borrowers to submit demographic information.
This legislation is the House companion to the bipartisan Paycheck Protection Small Business Forgiveness Act in the Senate (S. 4117).
The PPP was implemented as part of the CARES Act, which was passed by the U.S. House of Representatives and signed by President Trump at the end of March. The PPP is a loan program designed to provide a direct incentive for small businesses to keep their workers on the payroll.
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