LAS VEGAS – The Nevada Bankers Association is joining other local business organizations in pushing for a more simplified and streamlined process to help small businesses comply with the loan forgiveness requirements of the Paycheck Protection Program (PPP).
The NBA is part of a statewide group that includes the Vegas Chamber of Commerce, Reno Sparks Chamber of Commerce, Latin Chamber of Commerce, Economic Development Authority of Western Nevada, Nevada REALTORS®, Nevada Restaurant Association, Retail Association of Nevada and others.
Leaders of these organizations representing thousands of Nevada businesses are urging the U.S. Treasury and Small Business Administration to create a one-page “PPP-EZ form” that businesses could complete to acknowledge that they spent the majority of their PPP loan funds to preserve the jobs of their employees – as required by the CARES Act to have the loans forgiven by the government.
In a June 4 letter to leaders of the Treasury and SBA, the group wrote: “The current PPP forgiveness process might make sense for larger, more sophisticated borrowers, but for the smallest businesses it creates significant challenges. Consequently, for smaller borrowers the loan forgiveness process should be made easier and less technical.”
The letter added that “simplifying the forgiveness application process for the smallest borrowers will provide critical relief to struggling small businesses by eliminating the existing requirement to spend hours dealing with unnecessarily complicated paperwork, performing calculations, or expending precious dollars on consultants in order to comply. In addition to relieving these small businesses of the significant time and expenses required by the guidance released, this streamlined approach for loans will also relieve the SBA from an enormous administrative burden created by millions of requests for forgiveness.”
The trade groups also urged government officials to act quickly, before businesses are forced to spend even more time and resources on paperwork to prove they’re complying with the law. NBA leaders said the “EZ forgiveness movement” is about making it as simple as possible for smaller borrowers to apply for forgiveness for funds spent in compliance with the law. It is the approval of this application that converts the loan into a grant that does not have to be paid back.
“The Paycheck Protection Program was always intended to offer grants to small businesses to help them retain or quickly rehire their former employees. Our members appreciate the work of Congress to add flexibility that will maximize this intention and allow their customers to realize the fullest benefit of the program,” said NBA Executive Director Phyllis Gurgevich. “With the passage and enactment of the Flexibility Act, it broadens both how and during what timeframe borrowers can spend the PPP funds and remain compliant. NBA is currently working with state trade associations and small businesses to create a minimum amount established by the Treasury and SBA that would allow loan forgiveness utilizing an ‘EZ’ form. These businesses would still be bound by rules regulating how they use these funds. They would simply retain documentation in the event of a future audit and file for forgiveness using an attestation, much like what was used on the original application.”
To support the “EZ forgiveness movement,” small business owners can contact the U.S. Treasury or the SBA.
About Nevada Bankers Association
NBA is the united voice of Nevada’s diverse banking industry. Members are dedicated to providing the best financial products, services and resources to drive and support economic growth, job creation and prosperity throughout the state of Nevada. Visit www.nvbankers.org.