Business groups express frustration with more hurdles for PPP loan forgiveness

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Myriad business advocacy groups representing a wide swath of industries are expressing consternation with a new requirement by the federal government with regards to potential forgiveness of small business loans. The U.S. Small Business Administration, which administers the Paycheck Protection Program along with the U.S. Treasury Department, is now requiring businesses that took loans larger than $2 million to certify the necessity of the potentially forgivable funds. The PPP was established in March as a program for keeping businesses afloat and keeping workers on the payroll as the COVID-19 pandemic brought economies to a halt. “SBA is reviewing these loans to maximize program integrity and protect taxpayer resources,” the questionnaire reads. “The information collected will be used to inform SBA’s review of your good-faith certification that economic uncertainty made your loan request necessary to support your ongoing operations.”The nine-page form asks large borrowers multiple questions regarding annual revenue and operations since the COVID-19 pandemic began upending the U.S. economy in mid-March. Business advocacy groups, however, say the government should not be questioning whether the loans were taken in good faith.”Unfortunately, the questionnaires introduce a confusing and burdensome process for both borrowers and lenders, and we fear …

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