Months After Passing Legislation, PPP Loans Still Unforgiven

WASHINGTON, DC – In an effort to stave off a complete collapse of the American economy, Congress passed the CARES Act which provided $525 billion in loans through a program known as the Payroll Protection Program or PPP. Under the program, administered by the Small Business Administration (SBA), loans would be made to small and medium-sized businesses – including farmers and ranchers – where if the lender received documentation proving the employer maintained or quickly rehired employees and maintained salary levels, the loan would be converted to a grant and forgiven. According to the Independent Community Bankers of America, the SBA has yet to forgive any of the program’s loans, which is creating headwinds for borrowers and lenders alike. There are two bipartisan bills, one in the House and the other in the Senate, that would forgive PPP loans of less than $150,000 upon the borrower’s completion of a one-page document. Officially the SBA enrollment period concluded on August 8th, but with the general election just over a month away, few believe Congress will move the legislation before a lame-duck session in December.
(SOURCE: All Ag News)