PPP Loan Forgiveness Applications
Filed under:Affordable Housing, Construction, COVID Updates, Dental, Family Business, FQHC, Healthcare, Nonprofit, Private Companies, Small Business Services
Many borrowers have met their 8-week covered period and soon their banks will begin to accept Paycheck Protection Program (PPP) loan forgiveness applications. We still have some questions that need to be answered, but we continue to get clarification with each new rule released and there are more to come.
We have been in close contact with banks throughout the PPP loan process and recently received guidance from one of the “larger” banks on their plans for their loan forgiveness process. The following are a couple key insights learned:
- July 13th marks the date some banks will start accepting forgiveness applications. We anticipate many banks will begin accepting forgiveness applications mid to late July.
- The application and information will be submitted entirely online.
- Some borrowers may receive an email notifying them of the application process. This could vary by bank.
- Some banks may process forgiveness applications in “phases”. Many banks were overwhelmed with the volume of loan applications they received in April, and as a result, they may process forgiveness applications in “groups” or “phases” to mitigate receiving applications all at once.
- The last day to submit your application for forgiveness is October 31st, which is also the expiration of the forgiveness application form.
- The forgiveness application will take up to 5 months to review and determine the forgiveness amount. The bank has 60 days and the SBA has 90 days.
If you have a PPP loan, we recommend you contact the bank where you received your loan to ensure you know and understand the specific requirements of your loan forgiveness application process. Each bank will likely have a slightly different process, so proactive communication will be your best approach.
For recent news about PPP Loan Forgiveness, visit our COVID-19 Resource Center.
The Jones & Roth PPP Loan Forgiveness Task Force is here to support you. For more information, contact our Jones & Roth PPP Task Force.