Automatic Loan Forgiveness Suggested by Treasury

Department said that loans under PPP program should be seen as grants to small businesses.

Treasury Secretary Steven Mnuchin said Friday that Congress should consider automatically forgiving Paycheck Protection Program loans taken out by the smallest U.S. businesses.

In testimony before the House Small Business Committee, the secretary appeared to back a proposal from banks and others who have said the massive lending program should see loans under $100,000 automatically turned into grants.

A bill has been introduced in the Senate that would allow small businesses that received a PPP loan of $150,000 or less to obtain automatic forgiveness after submitting a one-page attestation form that would attest the loan is eligible for forgiveness in that the business complied with the PPP requirements to support jobs.

As the Lord Leads, Pray with Us…

  • For guidance and direction for Secretary Mnuchin as he works with the nation’s leaders to address the needs of the nation during this time.
  • For Congress as they continue to debate additional stimulus legislation and the inclusion in it of the forgiveness of some small business loans.
  • For the millions of Americans who have lost their jobs during the coronavirus pandemic.
  • For small businesses across the United States who are wrestling with either reopening or to retain employees while closed. 

Sources: Wall Street Journal, Business Insider


Back to top