WASHINGTON – Congressman Troy Balderson (R-OH) and a bipartisan delegation of more than 80 Members of Congress are pushing for further reforms to the Paycheck Protection Program (PPP), specifically the creation of a streamlined forgiveness application for loans less than $350,000. In a letter to Senate leaders, Balderson and the delegation argue that a streamlined loan forgiveness application will benefit not only the small businesses intended to benefit from the program, but small lenders like some of those in Ohio’s 12^th Congressional District.

“As this multi-million-dollar program was impressively rolled out in such a short amount of time, we’ve realized along the way the pieces of it that we can improve,” said Balderson. “The Paycheck Protection Program was designed to help Main Street businesses weather the pandemic storm so they can focus on recovery efforts. Saving them from a mountain of complex paperwork does just that.”

The letter points out that 94% of PPP loans were for $350,000 or less and likens a streamlined forgiveness application to a 1040-EZ form for taxpayers with relatively straightforward tax filings. Such an application for PPP loan forgiveness would not preclude the U.S. Department of the Treasury and Small Business Administration (SBA) from conducting oversight over the funds, or otherwise auditing any loan.

The delegation of House lawmakers sent the letter to Senate leaders following House passage of the Paycheck Protection Program Flexibility Act, which made other reforms to the program and was last week signed into law. This letter requests the Senate pen and pass legislation that would make this further, much-needed reform.

BACKGROUND

Established by the CARES Act, the Paycheck Protection Program is designed to support small businesses and small business employees during the COVID-19 outbreak through the distribution of loans. The loans are intended for payroll assistance, helping small businesses retain employees for the duration of the shutdown.

###