Coalition letter re forgiveness proposal


July 09, 2020


July 9, 2020

The Honorable Marco Rubio Chairman
Committee on Small Business & Entrepreneurship
U.S. Senate
428A Russell Senate Office Building Washington, D.C. 20510

The Honorable Ben Cardin Ranking Member
Committee on Small Business & Entrepreneurship
U.S. Senate
428A Russell Senate Office Building Washington, D.C. 20510

The Honorable Nydia M. Velázquez Chairwoman
Committee on Small Business
U.S. House of Representatives
2302 Rayburn House Office Building Washington, D.C. 20515

The Honorable Steve Chabot Ranking Member
Committee on Small Business
U.S. House of Representatives
2371 Rayburn House Office Building Washington, D.C. 20515

Dear Chairman Rubio, Chairwoman Velázquez, and Ranking Members Cardin and Chabot:

The undersigned trade associations representing thousands of small businesses, banks, credit unions, financial institutions, and employees strongly support S. 4117, “The Paycheck Protection Program Small Business Forgiveness Act”, sponsored by Senators Kevin Cramer, Bob Menendez, Thom Tillis and Kyrsten Sinema. The Paycheck Protection Program (PPP), established by Congress in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, has provided millions of small businesses the economic relief they need to meet the challenges posed by the COVID-19 crisis. This bipartisan legislation would ensure our nation’s small business owners can focus their time, energy, and resources back into their business and communities instead of allocating significant time and resources into completing complex forgiveness forms.

In order to help our nation’s smallest businesses, we urge Congress to quickly pass this 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 86 percent of total PPP recipients, but less than 27 percent of PPP loan dollars. Expediting the loan forgiveness process for many of these hard-hit businesses will save more than $7 billion dollars and hours of paperwork.

Data provided in an independent analysis by AQN Strategies (AQN) has shown an estimated benefit of issuing auto-forgiveness for various loan size thresholds. AQN anticipates the combined resource requirements of operators’ time and/or third-party expenses to represent an effective cost of $2,000-$4,000 for each business that applies for forgiveness, requiring 20-100 hours of focused time from key leaders of these businesses. With an average loan size of less than $19,000 for the smallest 60 percent of loans, this estimate would represent 10-20 percent of the loan amount itself, which is otherwise intended to support payroll, rent, and other obligations necessary to keep businesses alive and ready to restart. In addition, AQN’s analysis suggests that the cost to businesses and lenders would be lower than the cost for the government to auto- forgive loans.

Small businesses and their employees are the backbone of our nation’s economy and communities. Their time and resources would be better focused on getting the economy safely back up and running, not processing burdensome paperwork. We strongly support S. 4117 and look forward to working with you, the Committee, and the 116th Congress to pass this bill and have it signed into law. Thank you for your strong, common sense leadership on such a critical issue.


Aeronautical Repair Station Association Agricultural Retailers Association

AICC, The Independent Packaging Association Air Conditioning Contractors of America American Bankers Association

American Dental Association American Farm Bureau Federation

American Financial Services Association American Foundry Society

American Land Title Association

American Road & Transportation Builders Association American Society of Media Photographers

American Staffing Association

Asian American Hotel Owners Association Associated Equipment Distributors Associated General Contractors of America Associated Industries of Massachusetts Associated Wire Rope Fabricators

Association of Kentucky Fried Chicken Franchisees Association of Small Business Development Centers Association for Enterprise Opportunity

Auto Care Association Bank Policy Institute Brick Industry Association

Building Owners and Managers Association (BOMA)

California Association of Breakfast & Boutique Inns California Association for Micro Enterprise Opportunity California Hotel & Lodging Association


Commercial Food Equipment Service Association Inc (CFESA) Community Development Bankers Association

Consumer Bankers Association Credit Union National Association Decorative Hardwoods Association

Electronics Representatives Association Electronic Transactions Association Financial Services Forum

Foodservice Equipment Distributors Association (FEDA) Global Cold Chain Alliance


Golf Course Supertendents Association of America Hispanic Metropolitan Chamber

Hotel Association of Los Angeles HUBZone Contractors National Council Impact Hub Houston


Independent Community Bankers of America

Independent Cosmetic Manufacturers and Distributors (ICMAD) Independent Electrical Contractors

Independent Insurance Agents & Brokers of America Independent Lubricant Manufacturers Association Independent Office Products & Furniture Dealers Alliance Innovate Coalition

Innovative Lending Platform Association International Franchise Association International Sign Association

Leading Builders of America Kansas Global Trade Services, Inc. Long Beach Hospitality Alliance MarketPlace Lending Association

Mid-Size Bank Coalition of America Manufacturer & Business Association Manufactured Housing Institute Modular Building Institute

Motor & Equipment Manufacturers Association (MEMA)

North American Association of Food Equipment Manufacturers (NAFEM) National ACE

National Association of Chemical Distributors

National Association of Home Builders National Association of REALTORS®

National Association of Federally-Insured Credit Unions National Association of Professional Employer Organizations National Association of Professional Insurance Agents National Association of the Remodeling Industry

National Association for the Self-Employed National Association of Surety Bond Producers National Association for Surface Finishing National Association of Trailer Manufacturers

National Automatic Merchandising Association (NAMA) National Bankers Association

National Beer Wholesalers Association

National Center for American Indian Enterprise Development National Community Pharmacists Association

National Cotton Council

National Electrical Contractors Association

National Electrical Manufacturers Representatives Association (NEMRA) National Independent Automobile Dealers Association

National Limousine Association National Marine Distributors Association National Mining Association

National Office Products Alliance National Restaurant Association National Retail Federation

National RV Dealers Assn (RVDA)

National Wooden Pallet and Container Association

North American Association of Food Equipment Manufacturers North Carolina Bankers Association

Office Furniture Dealers Alliance Opportunity Finance Network

Outdoor Power Equipment and Engine Service Association Page 30 Coalition

Painting Contractors Association Partners for Rural Transformation Pet Industry Distributors Association

Petroleum Marketers Association of America (PMAA) Professional Beauty Association (PBA)

Promotional Products Association International (PPAI) Prosperity Now

Secondary Materials and Recycled Textiles Assoc. (SMART) Security Industry Association

Service Station Dealers of America and Allied Trades (SSDA-AT)

Small Business Majority

Small Business Council of America (SBCA) Small Business Legislative Council (SBLC) Small Business Investor Alliance

Small Business Majority Small Business Roundtable

Society of Collision Repair Specialists (SCRS) Southwest Cable Communications Association Specialty Equipment Market Association

Specialty Tools & Fasteners Distributors Association (STAFDA) Texas Bankers Association

The Latino Coalition (TLC)

The Society of American Florists The Transportation Alliance

The Water Quality Association Tire Industry Association

United Veterinary Services Association (UVSA)

U.S. Asian Pacific American Chamber of Commerce and Entrepreneurship

U.S. Black Chambers

U.S. Chamber of Commerce

U.S. Hispanic Chamber of Commerce Virginia Asian Chamber of Commerce Virginia Bankers Association

Virginia Small Business Partnership Washington Retail Association

Wine & Spirits Wholesalers Association Women Impacting Public Policy (WIPP) World Floor Covering Association Young Audiences Arts for Learning

Coalition letter re forgiveness proposal