WASHINGTON, D.C. — Trade associations representing the automotive aftermarket are among dozens of trade groups calling for automatic forgiveness of Paycheck Protection Program (PPP) loans for under $150,000.
In a letter sent to this week to ranking members of the Senate and House Committees on Small Business and Entrepreneurship, the trade groups voice their support for Senate Bill 4117, the Paycheck Protection Program Small Business Forgiveness Act, a measure that's receiving bipartisan report.
Among the groups that signed the letter are the Auto Care Association (ACA), International Franchise Association (IFA), Motor & Equipment Manufacturers Association (MEMA), Specialty Equipment Market Association (SEMA) and Tire Industry Association (TIA).
"We can avoid the burdensome cost of superfluous bureaucracy required to arrive at the foregone conclusion of loan forgiveness by implementing a few commonsense changes," Sen. Kevin Cramer, R-S.D., one of the bill's sponsors, said.
PPP went into place earlier this year as a lifeline to businesses impacted by COVID-19, and the program is part of the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. More than $500 billion in loans have been given to businesses to help with paying employees and covering other expenses.
"The Paycheck Protection Small Business Forgiveness Act would give small businesses peace of mind by eliminating unnecessary bureaucratic requirements and simplifying the process for forgiving smaller loans," Mr. Cramer said in a statement.
More than 85% of PPP loans to small businesses are less than $150,000, according to SEMA.
"Under the current program, the loan has restrictions on how monies are spent, including a requirement that 60% be spent on payroll cost," SEMA said, "and company officials must then spend many hours completing paperwork to document the spending. The proposed legislation would instead simply require borrowers to submit a one-page forgiveness document."