Paycheck Protection Program (PPP) loans for small businesses would automatically be forgiven under a bipartisan bill introduced recently by U.S. Sen. Thom Tillis (R-NC).
The Paycheck Protection Small Business Forgiveness Act, S. 4117, which Sen. Tillis cosponsored on June 30 with bill sponsor U.S. Sen. Kevin Cramer (R-ND), would provide automatic forgiveness for PPP loans under $150,000, according to the text of the bill.
“The Paycheck Protection Program played a crucial role in supporting small businesses and saving jobs for hardworking North Carolinians,” Sen. Tillis said. “I am proud to co-introduce this bipartisan legislation that will help small businesses save thousands of dollars by allowing forgiveness for their PPP loan and use those funds to help restart our economy.”
If enacted, S. 4117 specifically would authorize the PPP loan forgiveness if “the eligible recipient submits to the lender a one-page online or paper form, to be established by the Administrator not later than seven days after the date of enactment of this subsection, that attests that the eligible recipient complied with the requirements under section 7(a)(36) of the Small Business Act,” according to the text of the bill.
S. 4117 also would ensure that the lender is held harmless from any enforcement action if the borrower’s attestation contained falsehoods, according to the text.
The bill has been referred to the U.S. Senate Small Business and Entrepreneurship Committee for consideration.