The SBA has released a procedural notice covering details on how lenders can submit Paycheck Protection Program loan forgiveness applications/decisions and how PPP loan forgiveness reviews will be done. Banks and SBA-approved lenders will need to pivot quickly from PPP loan origination to loan forgiveness in the coming weeks. While you should consult with your PPP lender for their specific dates and plan, here is an overview of the latest news, and what we think is important to know.
Go Live Date for Lenders to Submit PPP Loan Forgiveness Applications is August 10, 2020.
The Small Business Administration recently announced that it has tentative plans to begin accepting lender forgiveness decision information on August 10 using a new “PPP Forgiveness Platform.” Note that this platform is intended solely for lenders—borrowers will submit their forgiveness application to their lender. Once the lender has made a determination on forgiveness, the lender then transmits data to the SBA.
Important note: The August 10 date is tentative because, as of the July 23 release date of the notice, Congress is currently considering legislation that could make various changes to the PPP loan program yet again.
Do I Need to Take Action, Now?
There is no rush to get your loan forgiveness application in first. The rate at which the first round of PPP funding was exhausted created a lot of anxiety for business owners to rush through the process. Given that, many businesses surely just want to put this process behind them and submit their forgiveness application right away.
However, there are still a lot of unanswered questions from the SBA and the possibility of further legislation coming regarding PPP, including the Paycheck Protection Flexibility Act. You have up to 10 months after the end of the covered period to submit your application.
Your best option may be to wait.
How Do I Know When the Best Time is to Apply for Loan Forgiveness?
We’re here to help. We can give your PPP loan a “second look” to cross check your calculations, documentation and advise on your readiness to submit your forgiveness application. There may be additional scenarios to discuss or actions you can take that improve your PPP forgiveness chances. Click here to learn more.
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