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On June 30th, Sen. Kevin Cramer (R-ND) introduced a bi-partisan Bill S.4117 to provide automatic forgiveness for paycheck protection program (PPP) loans under $150,000, and for other purposes. If passed, this would provide a huge relief to many small business owners and the financial institutions in processing the PPP forgiveness applications.
According to the SBA’s Paycheck Protection Program (PPP) Report as of June 27th, 86% of PPP loans are under $150,000 which accounts for 27% of the money funded.
In summary, Bill S.4117 states that PPP forgiveness will be automatically granted for any PPP loans under $150,000 if the borrow submits a simple, one-page attestation form to the lender. The one-page document must be created by the SBA within 7 days after the enactment date of the Bill. In addition, the borrower will be held harmless if the borrower attests that they complied with the requirements under the program. No enforcement action or penalty will be taken against the borrower unless the borrower committed fraud or spends covered loan proceeds on ineligible expenses.
This will help over 4.1 million small business in receiving nearly automatic loan forgiveness and a significant less amount of paperwork. The Bill is supported by several major financial institutions.
This Bill has only been introduced in the Senate and has not been voted on to date.