Paycheck Protection Program (PPP) loan borrowers have a bit more time to review and prepare their PPP Forgiveness Applications.
The Small Business Administration (SBA) released a procedural notice on July 23 - which can be viewed here - advising lenders that that they cannot submit their borrowers' PPP Forgiveness Applications until at least August 10, 2020.
Borrowers should note, however, that ongoing legislative developments and/or regulatory guidance may push this date out even further. In particular, guidance from the Treasury Department - which was expected in early July - is further delayed until legislation relating to the forgiveness process is resolved.
What does this mean for employers who received PPP loans?
"The notice from SBA advising lenders not to submit Forgiveness Applications until August 10 shows that the PPP program in general - and the forgiveness process in particular - is still in flux," says Peter Whelan, Executive Vice President at CheckWriters.
"Many businesses who received PPP loans have already completed their specified 'covered period' and spent the loan proceeds. It's understandable that they are looking to submit their forgiveness applications as soon as possible, however, it is hard to be comfortable with a process that is overly complex. Hopefully, the SBA will resolve the remaining issues quickly and clearly."
More legislation potentially on the horizon
Legislation currently working its way through Congress looks poised to offer additional relief and economic stimulus, and will likely include modifications to the PPP loan forgiveness process. Specifically, Congress is eyeing a simplified process for loans under $150,000.
How CheckWriters can help
Within the next week, CheckWriters will be releasing tools to assist with your PPP Forgiveness reporting. This information will address all aspects of your payroll reports, from Covered Period wages and FTE(s) to Lookback Period(s), Safe Harbor(s) and Salary-Wage Reduction calculations.