PPP Loan Forgiveness Update
There are 3 key points you should consider when determining when to file (and why you will need to wait):
1) Borrowers continue to wait for more information about loan forgiveness guidance to be released by the Small Business Administration (SBA). One reason for the delay is that Congress is debating a new round of COVID-19 relief. The next round is expected to include a second PPP initiative more targeted than the first one. The discussions may also include major changes relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000.
2) The SBA and Treasury are not expected to release the next round of expected FAQs before President Trump signs a new relief legislation. Congress is trying to finalize a package before going on recess August 8th.
3) Even if the FAQs are released, the SBA issued a procedural notice that indicated it would not begin accepting PPP forgiveness submissions from lenders until a new software-as-a-service platform currently under development goes live August 10th. The SBA said the launch could be delayed if new legislation changes the forgiveness process in ways that require changes to the new platform.
Resource: Journal of Accountancy, 7/24/2020
We will continue to keep you updated as more information is released.