CRL and more than 50 community development, civil rights and small business groups, including National Urban League, National Association for Latino Community Asset Builders, UnidosUS and National Coalition for Asian Pacific American Community Development are urging SBA and Congress to fix the Paycheck Protection Program’s current forgiveness rules so that microbusinesses can receive full forgiveness of their PPP loans.
Urgent recommendations in the letter include:
- Eliminate denials of loan forgiveness due to sudden changes in rules that were imposed without advance notice, both for business owners who have not yet applied for forgiveness and those who have been denied full forgiveness due to changes without advance notice.
- Rescind and reverse the SBA’s Jan. 15, 2021 rule denying forgiveness to borrowers who made good faith errors, both for business owners who have not yet applied for forgiveness and those who have been denied full forgiveness under SBA’s unfair January 15, 2021 standard.
- Alleviate unnecessary paperwork burdens for microbusinesses by implementing automatic forgiveness for loans of $25,000 or less.