Now that most businesses have used or come close to using all their PPP funds, many are eager to begin submitting their applications for loan forgiveness. If you have received a Paycheck Protection Program loan, you are likely getting periodic emails from your bank with updates on the forgiveness process. So what is the consensus? Are the banks taking applications yet? A few are but, for the most part, banks are saying “sit tight”. Why?
Currently, we are expecting additional legislation when Congress returns from recess in September that will affect the Paycheck Protection Program. One bill may allow automatic forgiveness of loans up to $150,000. Another may reduce some of the documentation requirements for loans up to $2,000,000. An additional expansion of the allowable expenses that can be forgiven is also proposed. If these bills are passed, the PPP loan forgiveness process could be significantly easier and could potentially save some business owners a lot of time, expense, and headache.
Since every step of the PPP process has been “hurry up and wait” for business owners, it should be no surprise that the final step, the loan forgiveness, won’t be any different. If your bank is taking applications and you want to apply now, you certainly can. However, for now, we are advising that you wait a bit longer.
For those who are concerned about the amount of time they have to apply for forgiveness, please refer to our previous blog that addresses the PPP relief provided under the Paycheck Protection Program Flexibility Act. If you have a specific question related to your individual situation, feel free to reach out to a HAS team member.