The Small Business Administration recently announced that it had started approving Paycheck Protection Program loan forgiveness applications and had eased the process for small-dollar borrowers.

A “simpler loan forgiveness application” now exists for small businesses who borrowed $50,000 or less under the popular COVID-19 economic relief measure, the SBA said.

The agency said it and the Treasury Department also “eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.”

“The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs,” Treasury Secretary Steven Mnuchin said in a statement.   “Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly.”

Mr. Mnuchin went on to say that favors additional legislation to further simplify the forgiveness process.

Research found 19,681 facilities received between approximately $1.25 billion and $2.06 billion combined and might have protected at least 133,000 jobs in the industry.  (Some of the employee data was incomplete.)

Nearly 60.1 percent of those companies borrowed $50,000 or less in PPP loan applications, potentially protecting at least 33,929 employees.

In a statement released by SBA Administrator Jovita Carranza, he said that “Nothing will stop the Trump Administration from supporting great American businesses and our great American workers,” he also added that “The Paycheck Protection Program has been an overwhelming success and served as a historic lifeline to America’s hurting small businesses and tens of millions of workers.  The new form introduced today demonstrates our relentless commitment to using every tool in our toolbelt to help small businesses and the banks that have participated in this program. We are continuing to ensure that small businesses are supported as they recover.”

Scores of business groups –including the Society of Collision Repair Specialists, SEMA and Auto Care Association have sought a simplified loan forgiveness process.

However, one of the associations in that effort warned that the process announced Thursday still would be unduly burdensome for small businesses.

“While we appreciate SBA and Treasury attempting to streamline the forgiveness process, it is apparent Congressional action is needed for the true streamlined forgiveness mom-and-pop businesses need,” Consumer Bankers Association CEO Richard Hunt said in a statement Thursday. “This newest process still requires a significant investment of time and resources from small business owners – resources which could be better spent paying their employees and supporting local economies.”

“Congress can solve this problem tomorrow and inject the equivalent of $7 billion into our economy by passing bipartisan, common-sense legislation to streamline PPP forgiveness for small businesses on Main Street in communities across the country.”

SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders

on Oct. 2.

Policy analysts for Raymond James said in Friday morning’s email briefing that the streamlined forgiveness process was for small borrowers with one or more employee other than the owner.

Industry participants and legislators alike, the analysts said, “had been calling for, and hoping for, forgiveness of loans less than $150,000. While this new announcement is not what we were hoping for, given the gridlock in Washington the timing of a $150,000 forgiveness approval was uncertain, this is significant a step in the right direction.”

Regional banking associations, other independent lobbying groups, and legislators “alike will continue to push for the larger $150,000 forgiveness threshold and a second round of PPP loans for the hardest hit industries,” the analysts said.

Contact your loan provider to see if they are accepting forgiveness applications using the simpler application.