Missouri businesses ask SBA for streamlined PPP loan forgiveness process for small businesses
June 3, 2020 - Associated Industries of Missouri joined more than a dozen associations in signing a letter drafted by the Missouri Bankers Association asking the SBA to consider a streamlined loan forgiveness process for small businesses that have taken Paycheck Protection Program (PPP) loans as a result of the COVID-19 pandemic.
Concerned that the current process is too burdensome and complex for small businesses, the letter requests the SBA consider streamlining the process through a one-page attestation acknowledging they spent the majority of PPP funds to preserve the jobs of their employees as outlined in the guidance and consistent with their PPP application. Documentation would be retained by the small business in case of an SBA audit in future years, but the bulk of the administrative burden on the vast majority of businesses that used the money as intended would be alleviated.
“Eliminating the bureaucratic red tape required to justify forgiveness of the loans makes sense for the 99% of small businesses that handled this money appropriately,” said Ray McCarty, president and CEO of Associated Industries of Missouri. “Small business operators just want to keep their businesses afloat in this extremely challenging environment and the government should do its part in allowing them to focus on reopening their businesses rather than filling out paperwork. We believe the taxpayers would be well served by a streamlined process and those that abuse the system would remain subject to audit by the SBA,” he said.
Established in 1919, Associated Industries of Missouri is the state’s oldest advocate for businesses in Missouri.