BIRMINGHAM – U.S. Senators Doug Jones (D-Ala.) and Tim Scott (R-S.C.) are calling for increased guidance on loan forgiveness for small businesses who have applied for grants under the Paycheck Protection Program (PPP) established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In a letter sent today to Treasury Secretary Steven Mnuchin and Small Business Administration Administrator Jovita Carranza, the senators wrote, “On Monday April 27, the second round of funding began to help support our small businesses. However, the terms for forgiveness were and continue to be ambiguous. As borrowers are responsible under the CARES Act for determining whether PPP proceeds were used as Congress intended, it is imperative that these regulations be laid out clearly so small businesses can make the right decisions on how to spend the funding.”
“Releasing guidance for lenders and small businesses is imperative to the success of this program and the SBA and Treasury Department should make it one of their priorities to clarify,” the letter continued. “There are many nuances that clear regulation could solve to make sure small businesses and their workers receive the most support from this program.”
The most recent relief package passed by Congress replenished funding for key Small Business Administration (SBA) response programs, including $310 billion for PPP. It also included important policy reforms to expand access to SBA programs to more minority-owned businesses, rural businesses, small mom-and-pop shops, and smaller non-profit organizations.
Full text of the letter can be found here
Media Release/Office of Alabama Senator Doug Jones
