ORLANDO, Florida – With no new stimulus package in sight, small business owners are still waiting to learn more about the forgiveness loan application that is part of the Paycheck Protection Program.
“It’s very stressful, it’s very scary to see that ‘Hey you might have to be responsible for this money’,” Too Much Sauce owner Evan Dimov told Orlando about the PPP loan that he received in April to help him stay afloat. during the pandemic closure.
The PPP was part of the $ 350 billion given to the administration of small businesses under the CARES law. It provided forgivable loans to cover salaries and overheads, intended to keep mom-and-pop stores from closing.
“Right now, I’m just waiting to complete my pardon application,” said Greg Granda, owner of Shaker’s American Cafe. “We don’t really know for sure. But I think it will just be a streamlined application. Granda and Dimov are among more than 96,000 small business owners who have received PPP assistance.
Both business owners said they were ready to apply for loan cancellation, but there is still process ambiguity.
“They change the rules so many times and we’re just waiting to see. It’s a little stressful in a way because you don’t know if they’re going to forgive everything, ”Dimov said. “Sometimes they say it’s going to be forgiven up to 150 or just 50, so we don’t really know how many documents are needed. . “
The Small Business Administration began accepting forms on August 10. By the end of September, she had received 96,000 but had not yet approved or refused a single request, according to her chief of staff, William Manger.
“Right now the CBA, along with a coalition of 100 other trade associations that represent businesses as well as lenders, are working to put in place a streamlined forgiveness process,” said Nick Simpson, vice-president. Senior President of Public Affairs for the Consumer Bankers Association, adding they are working to achieve a streamlined remittance process that would simplify the application for businesses that have received $ 150,000 or less.
“Especially for small mom and pop businesses to have a streamlined process that says I have used my funds according to the program, as per the law, and sign a one-page certification that will allow SBA to go from there. ‘forward and forgive the majority of those loans,’ said Simpson.
Currently, Senate Bill 4117 would provide for the automatic cancellation of a paycheck protection loan that does not exceed $ 150,000 if the payee submits a one-page form, but until the House Blanche and Congress reach agreement on a new stimulus package, the CBA believes it is unlikely to pass before the election.
“There is a bipartisan bill, one in the Senate and one in the House. There is probably bipartisan support for this streamlined P3 forgiveness process, so let’s go ahead and move on. Let’s get that off the table and then come back and get into new negotiations on a larger package, ”said Simpson.
As for owners of small businesses like Granda, he supports the idea as it takes the burden of providing the lender with a large amount of paperwork.
“The SBA doesn’t want small business owners spending a lot of time with paperwork,” Granda said. “If it could be a simple one page app, reiterate that you spent the money right, I would be very happy.”
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