October 14, 2020

PPP Forgiveness Update

The U.S. Small Business Administration, in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. This makes it easier for businesses that applied for loans of under $50,000 to apply for forgiveness.  More information is available on the SBA’s website here.

As you already know from reading Evergreen’s newsletter, all applications for forgiveness must be submitted to and processed by the financing institution that your loan came from–contact your bank directly to learn what you need to do to submit an application for forgiveness. Some lenders may have you fill out the actual SBA application but most will have their own portal through which you will submit your application. Your bank will tell you what you need to do to apply!

So, please keep an eye on communications from your lender regarding the forgiveness process. The SBA has created a number of changes to simplify the application process and has clarified many aspects (though not all!) of the rules. We hope and expect there to be additional improvements and clarity coming from them in the coming weeks. In the meantime, keep tracking your eligible expenditures, compiling related documentation and staying on top of the latest changes and directives from your lender. Remember: while it’s understandable that you may want to get it over with, you have 10 months after the end of the loan’s covered period (the eight or 24-week period that your business chose) to apply for forgiveness. Ideally, you will apply when your business qualifies for maximum forgiveness, the rules are set and the application is in it’s most user-friendly form.

If you have any questions please contact Natalie Vichnevksy.