Paycheck Protection Program borrowers, as well as their lenders, are operating without adequate understanding of how their loans will be forgiven, Sens. Doug Jones (D-Ala.) and Tim Scott (R-S.C.) wrote to the Small Business Administration and Treasury Department yesterday.
“Some owners were told that to gain forgiveness, they would have to submit a request to their lenders,” wrote Jones and Scott, who are members of the Senate Banking Committee. “Others were told that they have to go straight to the SBA. Conflicting information at a time of uncertainty can be harmful to the significant and successful goal of the Paycheck Protection Program.”
Jones and Scott urged SBA and Treasury to provide clarity to PPP borrowers on how they will obtain forgiveness, including technical matters related to full-time-equivalent employees, tipped wages and seasonal employees. “There are many nuances that clear regulation could solve to make sure small businesses and their workers receive the most support from this program,” they added.
