As Stimulus Deal is Reached, Small Business Majority Urges Congress to Automatically Forgive PPP Loans Under $150,000
Washington, DC – Today, as a deal was reached for the next COVID-19 stimulus package, Small Business Majority Founder and CEO John Arensmeyer urged Congress to include automatic forgiveness of all Paycheck Protection Program (PPP) loans under $150,000. In a letter to House and Senate Leadership, Arensmeyer asked that S. 4117, the Paycheck Protection Small Business Forgiveness Act, is included as part of the next relief package. S. 4117 strikes the appropriate balance between forgiveness and oversight, by automatically forgiving all PPP loans under $150,000, ensuring critical demographic information is collected, and providing a provision to deter fraud.
“Loans under $150,000 represent only 26% of the PPP funds disbursed, and the overwhelming majority of these loans likely went to the most vulnerable, COVID-19 impacted businesses. For millions of small and micro-business owners, incurring additional debt, especially during a down cycle, could sink their business. By forgiving the smallest loans, Congress and the Administration will be taking an important step toward helping America's small businesses recover,” wrote Arensmeyer.
In a recent national poll, Small Business Majority found that 80% of small business owners are concerned about PPP’s forgiveness rules and worry that their loan will not be forgiven. Additionally, in a survey of its network, Small Business Majority found that 57% of small business owners are struggling to meet rent and mortgage 0bligations, and 37% report future layoffs are likely or very likely once their PPP funds are exhausted—painting a picture of just how dire the circumstances are for the smallest businesses.
“With COVID-19 cases increasing in many states and consumer confidence down, millions of small businesses continue to struggle to stay afloat. While many have received PPP loans to support them during this difficult time, we have heard time and again that the program’s loan forgiveness guidelines are confusing and unworkable,” concluded Arensmeyer.
The full text of the letter can be found here.
About Small Business Majority
Small Business Majority was founded and is run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. We actively engage our network of more than 65,000 small business owners in support of public policy solutions and deliver information and resources to entrepreneurs that promote small business growth. Our extensive scientific polling, focus groups and economic research help us educate and inform policymakers, the media and other stakeholders about key issues impacting small businesses and freelancers. Learn more about us on our website and follow us on Twitter, Facebook and Instagram.