Associations Ask SBA for Clarity on PPP Forgiveness
WASHINGTON, D.C. – A group of small-business associations are pushing the Small Business Administration to issue more guidance on how Paycheck Protection Program loans will be forgiven.
The American Institute of CPAs, the National Federation of Independent Business and S Corporation Association issued the statement, along with the Associated Builders and Contractors, National Electrical Contractors Association, the American Council of Engineering Companies and the National Association of Wholesaler-Distributors.
“This relief is needed now more than ever. However, changing SBA guidance is causing many small businesses to rethink their participation in the program,” the associations said. “Small businesses need consistency and certainty, and applicants need to know that they will be held to the same guidance that was in place at the time the business applied for a loan.”
“Some deserving businesses are returning funds or choosing to forego applying due to the uncertainty created by the SBA,” the statement continues. “As the Wall Street Journal reports, demand for PPP loans has all but dried up in the last week. This collapse of trust in what ultimately has been a successful program is troublesome and will negatively impact our country’s economic recovery.”
The associations urged the Small Business Administration to revise recent guidances to “better mirror the PPP’s intent” of providing financial resources to small businesses during the coronavirus pandemic and to provide additional guidance on how the loans will be forgiven.
Collectively, the associations represent several million businesses across the United States.
Published by The Business Journal, Youngstown, Ohio.