Removing Barriers Blog

CUNA writes in support of PPP Small Business Forgiveness Act
Posted July 01, 2020 by CUNA Advocacy

CUNA wrote to Senators Cramer (R-ND), Menendez (D-NJ), Tillis (R-NC), and Sinema (D-AZ) in support of their recently introduced legislation - Paycheck Protection Program Small Business Forgiveness Act.  If enacted, this legislation would simplify loan forgiveness from the Paycheck Protection Program (PPP) and has CUNA’s full support.

In the letter CUNA wrote, "This bill will allow America’s small business owners and Main Street financial institutions to remain focused on serving their communities rather than jumping through burdensome regulatory hurdles. Specifically, this bill would provide forgiveness for Paycheck Protection Program (PPP) loans of $150,000 or less if the borrower submits an attestation form to the lender. It also ensures that the lender will be held harmless from any enforcement action if the borrower’s attestation contained falsehoods.”

Specifically, the bill would:

  • Forgiveness for covered PPP loans of less than $150,000, if the borrower submits a simple, one-page attestation form to the lender.
  • The lender shall be held harmless from any enforcement action if the borrower’s attestation contained any falsehoods.
  • The borrower attestation will include a means by which a borrower, on a voluntary basis, will provide the following demographic information: sex; race; ethnicity; and veteran status of owner.  
  • According to the Small Business Administration, 3.7 million PPP loans were $150,000 or less. This accounts for approximately 85% of all PPP loans, but only 26% of the program’s dollars.

“America’s credit unions wholeheartedly support Sen. Cramer’s Paycheck Protection Small Business Forgiveness Act,” said CUNA President/CEO Jim Nussle. “This bill will allow America’s small business owners and Main Street financial institutions to remain focused on serving their communities rather than on jumping through burdensome regulatory hurdles.”