Van Hollen Urges Trump Administration to Clarify Timeline, Expedite Process for PPP Loan Forgiveness
Maryland’s Small Businesses and Non-Profits Have Expressed Need for Clear Guidance to Make Informed Decisions
U.S. Senator Chris Van Hollen (D-Md.) urged U.S. Treasury Secretary Steven T. Mnuchin and Small Business Administrator Jovita Carranza to issue guidance clarifying the timeline and expedite the process for Payroll Protection Program (PPP) loan forgiveness. In a letter sent today, the Senator conveyed the concerns of Maryland small businesses and non-profits, who have expressed the need for further clarification on PPP forgiveness requirements in order to apply for loans, make informed business decisions, and get the relief they need to weather the coronavirus crisis.
“If a small business or non-profit applies for forgiveness after the eight week covered period and qualifies, they should know the tentative date on which they will be repaid by their lender after submitting their loan forgiveness application as well as a step-by-step guide to the forgiveness process from application to remittance of the loan amount to the borrower,” the Senator writes.
He goes on to press the urgency of this needed guidance, stating, “Without a clearly defined timeline and process for repayment of the loan, small business owners and non-profit organizations do not have the information necessary to make informed financial decisions for their businesses or organizations. This uncertainty may drive some business owners or non-profit organizations to forgo desperately needed assistance when that assistance could have allowed them to keep their workers employed and their businesses and organizations alive.”
“The PPP is meant to be a lifeline to small businesses and non-profits during this exceedingly challenging time. A lack of information should not prevent them from obtaining the help they need,” the Senator concludes.
The full text of the letter is available here and below.
Dear Secretary Mnuchin and Administrator Carranza,
I write to urge you to provide updated guidance clarifying the timeline and process for forgiveness under the Payroll Protection Program (PPP). Over the past several weeks, I have been in touch with businesses and non-profits throughout Maryland, and some have expressed concerns that Treasury has not clarified the timeline and process for loan forgiveness under the PPP.
If a small business or non-profit applies for forgiveness after the eight week covered period and qualifies, they should know the tentative date on which they will be repaid by their lender after submitting their loan forgiveness application as well as a step-by-step guide to the forgiveness process from application to remittance of the loan amount to the borrower.
Without a clearly defined timeline and process for repayment of the loan, small business owners and non-profit organizations do not have the information necessary to make informed financial decisions for their businesses or organizations. This uncertainty may drive some business owners or non-profit organizations to forgo desperately needed assistance when that assistance could have allowed them to keep their workers employed and their businesses and organizations alive.
The PPP is meant to be a lifeline to small businesses and non-profits during this exceedingly challenging time. A lack of information should not prevent them from obtaining the help they need.
Sincerely,
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