The Treasury announces that the delivery of the PPP loan will arrive soon
Small business owners who have been waiting for their Paycheck Protection Program (P3) loan cancellation to breathe a sigh of relief.
the US Department of the Treasury said on Tuesday (September 29) that he would soon start forgiving PPP loans after borrowers and lenders complained that the Small business management (SBA), the program manager and treasury employees did not respond to requests for forgiveness, according to The Wall Street Journal (WSJ).
The newspaper reported that a spokesperson for the Treasury said it planned to approve the pardon requests by the end of the week or early next year. Most loans are expected to be approved quickly, while those over $ 2 million will be subject to further scrutiny, the Treasury said.
“The ultimate success of the program will depend on forgiveness, so small business owners are eager to learn more about [Treasury officials’] decisions ”, said Kevin kuhlman, senior director of government relations for the National Federation of Independent Business (NFIB), the small business trade association based in Nashville, Tennessee.
Sunday (September 27), Politics reported that no loans were canceled under the massive federal program because employers feared they would be forced to pay for the money.
As part of this measure, small businesses were promised loan forgiveness as long as 60% of the money was used for payroll and 40% for other eligible expenses. The banks blamed the SBA and the Treasury for a lack of communication on how to proceed.
Guillaume Manger, chief of staff and associate administrator of the SBA, told House lawmakers last week that he had received 96,000 requests for forgiveness, or about 2% of total loans, but none have been approved or denied. Applications represent about 2% of the more than 5 million loans, worth $ 525 billion, issued under the program.
Since the PPP expired in August, $ 130 billion has yet to be distributed, the WSJ reported. Congress has not determined how the remaining funds should be allocated.
Lawmakers have introduced legislation to facilitate the forgiveness of PPP loans under $ 150,000, the WSJ reported.
“It’s actually more complicated than any of us thought,” said Jack murphy, president of corporate banking services Citizens Financial Group, at a Consumer Bankers Association conference Tuesday. “It takes us two weeks to process a request. Four to six contacts between small business owners… and people trying to process pardon requests.
Treasury Secretary Steven Mnuchin urged business owners to apologize if they had used the funds.
A recent NFIB poll found that one in five small businesses said it is expected to close by March if economic conditions do not improve. The survey of PPP borrowers indicated that 84 percent used all of the loans they had previously received, while 44 percent said they would apply for or re-apply for a second PPP loan if it became available.