While talks of a new stimulus deal have stalled in Congress, a lot of small business owners received funds from the Paycheck Protection Program (PPP) earlier this year
In fact, it’s now time we think about repaying some of those funds if necessary, and if so, how much.
So, it was welcome news late last week when the U.S. Small Business Administration announced new, streamlined procedures for PPP loam forgiveness for those who received $50,000 or less.
The SBA – in conjunction with the Treasury Department – released a playbook for simplified loan forgiveness procedures for those who were granted PPP loans of $50,000 or less.
The announcement included updated loan forgiveness applications and resources, all meant to add some ease and organization for hundreds of thousands of business owners who saw financial relief as Coronavirus lockdowns crippled the economy this spring.
The SBA’s new clarification also is meant to add a layer of accountability and diligence for taxpayer dollars, which will eventually fund the PPP program in the big picture. The move is expected to stave off instances of fraud and misuse of funds, as well as aiding both individual borrowers and PPP lenders.
According to a statement by Secretary of the Treasury Steven T. Mnuchin, “The PPP has provided 5.2 million loans worth $525 billion to American small businesses, providing critical economic relief and supporting more than 51 million jobs. Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly. We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds.”
The SBA also announced an expedited process for processing PPP loan forgiveness applications, with repayment beginning on October 2, 2020.
If you have questions about your PPP loan or loan forgiveness, you can access these updated SBA resources. Click here to view the simpler loan forgiveness application. Click here to view the instructions for completing the simpler loan forgiveness application. Click here to view the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less.
Or make an appointment with my office for help using this scheduling link.