ALTA and Large Coalition Urge Congress to Simplify PPP Forgiveness Process

November 19, 2020

ALTA joined 110 other business and financial trade groups calling for Congress to pass legislation that would streamline the Paycheck Protection Program (PPP) forgiveness process.

In a letter to Congressional leaders, the group urged Congress to pass S. 4117, The Paycheck Protection Program Small Business Forgiveness Act, and H.R. 7777, The Paycheck Protection Small Business Forgiveness Act. S. 4117 is sponsored by Sens. Kevin Cramer, Bob Menendez, Thom Tillis and Kyrsten Sinema. H.R. 7777 is sponsored by Reps. Chrissy Houlahan and Fred Upton.

In the letter, the groups ask Congress to pass legislation that would forgive PPP loans of less than $150,000 upon the borrower’s completion of a simple, one-page forgiveness document. PPP loans of $150,000 and under account for 87 percent of total PPP recipients, but less than 28 percent of PPP loan dollars. Expediting the loan forgiveness process for many of these hard-hit businesses would save more than $7 billion and hours of paperwork.

More than 5,100 title and settlement companies received funds from the program, according to data released July 6 by the U.S. Small Business Administration and Treasury Department. Based on statistics released in early July, roughly 81 percent of title companies that received PPP loans were provided $150,000 or less and would benefit from these bills. 

The PPP was established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP loans allow companies with 500 employees or less to borrow up to 2.5 times their average monthly payroll.

PPP loans will be fully forgiven if the funds are used for certain business costs. At least 60 percent of the forgiven amount must have been used for payroll (This includes health care, retirement, etc.). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.


Contact ALTA at 202-296-3671 or communications@alta.org.

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