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Treasury's Mnuchin open to blanket forgiveness for smaller business relief loans

EconomyJul 17, 2020 02:36PM ET
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2/2 © Reuters. House Small Business Committee in Washington, DC 2/2

By Pete Schroeder and David Lawder

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin said Friday policymakers should consider blanket forgiveness for all smaller businesses that received "Paycheck Protection Program" loans.

Mnuchin told lawmakers that they should consider such an approach to reduce complexity, coupled with some form of fraud protection.

He also said the Trump administration supports adding more funds to the $660 billion program, as well as allowing especially hard-hit businesses to apply for a second emergency loan.

He did not define how small a loan would have to be to qualify for automatic forgiveness, and added it should be paired with some form of fraud protection without going into detail. Several business and banking groups have pushed for blanket forgiveness for all loans under $150,000, arguing the requirements for applying for forgiveness under the program are too complex.

His comments come as Congress is preparing further economic relief legislation to support businesses and people harmed by pandemic lockdowns. Roughly $100 billion remains in the PPP, a forgivable loan program created by the initial stimulus package, is set to expire on Aug. 8.

Mnuchin added that he would also support applying some sort of "revenue test" to future PPP loans to make sure the remaining funds go to businesses that need it the most. The PPP has come under criticism after wealthy and larger companies secured loans under the program, which was billed as relief for small businesses.

"This time, we need to have a revenue test and make sure that money is going to businesses that have significant revenue declines," he said.

He also said he would support efforts to set aside a portion of remaining PPP funds for minority-owned businesses, amid concerns from some lawmakers that those businesses were struggling to secure funding.

Treasury's Mnuchin open to blanket forgiveness for smaller business relief loans
 

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Comments (7)
Tony Sayegh
Tony Sayegh Jul 17, 2020 2:46PM ET
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Fed stop propoing uo this fake market! Why arent they talking about China and that they have NO deal! China isnt buying from the US anymore.
Buzzy Jefferson
Buzzy Jefferson Jul 17, 2020 2:46PM ET
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Sooo, stop helping the economy aaand stick it harder to China? What would you like to see happen to The US?
Nysom Nysom
Nysom Nysom Jul 17, 2020 2:09PM ET
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banana republic
Ed Glass
EddieG Jul 17, 2020 1:53PM ET
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trump's treasurer preferentially forgiving loans to his friends, family, supporters and self.
Buzzy Jefferson
Buzzy Jefferson Jul 17, 2020 1:53PM ET
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what part of "smaller" didn't you get?
Plopseven Schwartz
Plopseven Schwartz Jul 17, 2020 1:53PM ET
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Not much of a loan if it’s forgiven is it? All Americans should commit to a tax strike. Our government doesn’t have a clue how to balance a budget, and they never have.
Thom Miller
Thom Miller Jul 17, 2020 1:27PM ET
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No news here. “Foregiveness” is normally the case with SBA loans. This “announcement” has been heavily rumored for months now. “Follow the Yellow Brick Road Munchkin” simply wanted to grab a fake headline.
Buzzy Jefferson
Buzzy Jefferson Jul 17, 2020 1:27PM ET
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Huh?
Matt luck
Matt luck Jul 17, 2020 12:51PM ET
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Government picking winners and losers, just like communist China. Just let 'em fail like they should. Risk is risk and should have consequences or the only option is to go full risk and we end up with an out of control speculators economy.
Ed Glass
EddieG Jul 17, 2020 12:51PM ET
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aren't we already there? i mean this market.
Buzzy Jefferson
Buzzy Jefferson Jul 17, 2020 12:51PM ET
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Like the risk of China dumping another virus on the world? Is that the kind of risk you're flapping about?
Ho DoKe
Ho DoKe Jul 17, 2020 12:19PM ET
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Munchkins is a third league economist. Not hard to see why he wants this a few months before election. Do it after the election . The election is really the driver for all these decisions.
 
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