PPP Loan Forgiveness Update

July 27 Update

This week, the AICPA noted that “borrowers should not rush to apply for forgiveness.” citing new changes being debated in Congress as part of the next stimulus package. [Read more here.] Over 100 associations/stakeholders have asked the SBA to expedite forgive for loans under $150K. [Read more here.] As the SBA will not begin to process applications before Aug 10 at the earliest, our recommendation is to wait until at least September before applying.

July 20 Update

Steven Mnunchin, Treasury Secretary, suggested on Friday that Treasury and the Small Business Administration should forgive PPP Loans without verifying how they were used and should deem them grants. Read more here and here.

July 7 Update

With over $100 billion still available, in a surprise move, Congress extended the application period for Paycheck Protection Program loans from June 30 to August 8.  Two implications:

• If you have a loan: With the application extension, banks will not begin accepting forgiveness applications before the middle of August.

• If you do not have a loan: Perhaps you held off applying because revenue had held steady but as the crisis has lingered you are beginning to see some downward progression.  Contact us about submitting an application.

June 4 Update

Congress passed the Paycheck Protection Program Flexibility Act of 2020 yesterday, June 3. President Trump is expected to sign the bill into law.

The bill allows business owners more time and flexibility in using PPP Loan money, expanding the parameters of what is considered forgivable. The 8 week period for spending the loan will be extended to 24 weeks and will now require only 60% of loan funds to be used toward payroll.

Check back for details as they become available.