As we await for Congress to pass the next economic stimulus package, we advise Business owner’s to wait to submit the PPP Loan Forgiveness Application and utilize the 24 week covered-period. Each borrower has 10 months after the completion of the 24-week covered period to submit the loan forgiveness application to the bank before any payments are required to be made on the loan.
We anticipate the future stimulus package will include revisions to the PPP loan forgiveness program that could potentially simplify the process and potentially grant automatic forgiveness for loans under a certain dollar amount.
The Small Business Administration (SBA), in consultation with the Department of the Treasury, is providing guidance to address borrower and lender questions concerning forgiveness of Paycheck Protection Program (PPP) loans. Below is the FAQ guidance from the SBA released on August 4, 2020.
If you have questions, please do not hesitate to contact our office.
