July, 28 2020 | By: LendVer Staff –
On June 30, 2020 U.S. Senators Kevin Cramer (R-ND), Bob Menendez (D-NJ), Thom Tillis (R-NC) and Kyrsten Sinema (D-AZ), Senate Banking Committee members, introduced the Paycheck Protection Small Business Forgiveness Act. This bipartisan legislation seeks to streamline forgiveness of Paycheck Protection Program (PPP) loans for small businesses by automatically forgiving all loans under $150,000.
What the Bill Says…
If this new legislation is signed into law, the PPP loan forgiveness process for loans under $150,000 would be reduced to a one-page attestation form to be completed by the borrower, and submitted to the lender. The lender would also be held harmless from any enforcement action if the borrower’s attestation contains falsehoods.
The impetus for the legislation is to reduce the documentation and cost burden for the smallest businesses to pursue and obtain forgiveness. Under the current forgiveness process a borrower must complete either the PPP Loan Forgiveness Application Form 3508EZ if these qualifications are met, or the much lengthier Form 3508 if the borrower doesn’t qualify to use the Form 3508EZ. It is also estimated that the cost for a small business with a PPP loan under $150,000 to apply for forgiveness is $2,000, and it would cost the lender $500. If approved, this bipartisan legislation could save small businesses $7.4 billion and banks nearly $2 billion.
Where to Get a PPP Loan
Funding Circle is one of the largest non-bank business lenders in the world, it has a network of 100,000 investors, and its backers collectively manage over $5 trillion. Funding Circle is one of the leaders in providing 1st and 2nd Paycheck Protection Program loans, and through its customized technology, has streamlined the PPP loan process enabling any eligible business to apply for a PPP loan. Additionally, Funding Circle’s customer service team provides a dedicated representative to assist you through its PPP loan application process.
If you’re one of the approximately 4.2 million small businesses that have been approved for a PPP loan of $150,000 or less, then there is a chance that your forgiveness process could get a lot simpler. If you haven’t received a PPP loan yet or need another one, then applying with Funding Circle is the best place to start.
Don’t hesitate to contact us if you are unsure of which financing option is the right choice for you, or if you need additional lender recommendations beyond those mentioned in this article.