It’s been some time since I last updated you on the Paycheck Protection Program, so I’m reaching out to highlight a few recently issued details re: PPP forgiveness and other items I thought would be of interest to you and your coverage.
- As of Friday, Oct. 2, the SBA began approving forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers. (For background: Per program guidelines, lenders have up to 60 days to review the applications and, in turn, the SBA has up to 90 days to review loans for forgiveness. Further, the PPP lenders must receive and process the forgiveness payments before PPP borrowers are notified of them.)
- A simpler forgiveness form for PPP loans of $50,000 or lower, which can cover almost 70% of all PPP loans approved (more than 3.5 million). The one-page 3508S requires the PPP borrower to self-certify seven items (along with requesting demographic information) and makes it easier for both the borrower and lender to process.
- Change of ownership guidance for lenders addressing details on what needs to be done if the PPP note has been satisfied and if it has not been satisfied.
Also, SBA’s FY-end numbers will be published in the coming weeks, highlighting the impact of the COVID-19 economic recovery the agency administered as well as the standard SBA-backed loans small businesses used to start, grow and expand before and during the pandemic.