PPP Loan Forgiveness. Is it time to apply?
Some businesses that participated in the SBA Payroll Protection Program have started receiving information from their banks on submitting the paperwork to have the loan forgiven. This process was part of the original intent of the CARES Act passed by Congress in the Spring of 2020.
Our advice, and the advice of many professional organizations, is that it is best to wait on applying for your loan forgiveness. Many of the largest banks have not even opened the process and plan to do so in September. The reason is that Congress, the SBA and Treasury are still working with the process. There are several unanswered questions.
The real deadline according to the CARES Act is when you can no longer apply for forgiveness. That date is 10 months from the last day of your covered period. While many banks may want to push for early forgiveness due to the large number of loans to process, there is no reason to rush. There is still some debate that Congress may decide to forgive loans under a certain amount automatically.
At the same time, we have a number of tools and worksheets that can help you with the application that has been released to date. Please contact us if you have any questions about this entire process.