The US Treasury Department will begin canceling loans to small business owners under the Paycheck Protection Program in response to complaints from borrowers and banks that the process has been too slow, according to a Wall Street Journal report.
Starting at the end of the week or early next week, the government plans to pay the pardon requests, according to a Treasury spokesperson. Loans over $ 2 million will be examined more closely.
Banks, business owners and lawmakers have said the process has been too slow under the program, which allocated $ 670 billion to help small businesses during the pandemic. The process made it possible to distribute government loans to businesses through the banks.
The Small Business Administration has received more than 96,000 requests from companies asking for loan cancellation, none of which has been forgiven, according to William Manger, the agency’s associate administrator and chief of staff, in comments to lawmakers in the Bedroom.
Almost $ 130 billion in P3 funding has not been allocated since the program expired in August. Lawmakers have not decided how to use the remaining funds to help small businesses.
Legislation has also been introduced to cancel PPP loans under $ 150,000 on the basis of the borrower’s assurance to use the loans as directed.
Treasury Secretary Steven Mnuchin urged business owners to apologize quickly rather than wait for legislation.