Many business owners are now finished spending their PPP funds and are ready to get started on the forgiveness part. I mean who wouldn’t be eager to receive loan forgiveness on the full loan amount or majority of their loan? It will surely take some stress off your back and of course debt!
Here is what is going on…
When Can Applications Be Submitted?
The PPP Loan Forgiveness Application was made available back in May, but banks are being advised not to process PPP Forgiveness Applications until further guidance is released by the U.S. Treasury and SBA.
When Will Further Guidance Be Released?
We were expecting that the final guidance would be released in early July, but it is now dependent on when related federal legislation is resolved.
The new expected date for Loan Forgiveness Applications to be accepted by banks is August 10th. As always, keep in mind this is not a hard date as it is dependent on when legislation is enacted.
What To Do While We Wait?
Although we have some time before banks will start to accept PPP Loan Forgiveness Applications, we do recommend borrowers start gathering the necessary documents that display how the PPP funds were used.
What Documentation Is Needed For Forgiveness?
While each businesses case may be different, here are some documents you will need to gather.
- Documentation verifying the number of employees on payroll and pay rates—including IRS payroll tax filings and state income, payroll, and unemployment insurance filings
- Documentation verifying payments on covered mortgage obligations, lease obligations, and utilities
We will continue to watch legislation and keep you updated. For some cases and depending on loan amount, preparing the needed documentation for forgiveness may be more difficult than others. We will be assisting in Loan Forgiveness Applications starting in mid-August, but like banks we are waiting for final guidance to be released, so this date may change.
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