Interim final rule (IFR) on the Payment Protection Program issued
PPP Loan Forgiveness
SBA and the U.S. Treasury Department issued another interim final rule (IFR) on the Payment Protection Program, with specific items on the forgiveness of the loan. If you want to read the document, the link is below and the forgiveness part starts on page 6.
The meat of the IFR that we are interested in is the Loan Forgiveness Process. In the Paycheck Protection Program Forgiveness Application blog previously posted you can access the application. All of this subject to change and there is a proposal in Congress that may change things yet again. The potential changes may be really beneficial to some businesses by extending the forgiveness period, and several will not notice a difference in their forgiveness amount. As always, who knows if Congress will do anything, or change things more drastically than we can imagine.
How our process will work:
The application for forgiveness will be available to be filled out via a portal on our website. After you pass the 8 weeks from when your loan was funded, you will get an email with a link to the site. As we get closer, we’ll provide more details on how the email will look so you don’t delete it. We will have a more detailed training guide available shortly. The site will take you through step-by-step all questions you will need to answer, have spreadsheets available for the schedules, and will calculate the appropriate forgiveness amounts. After we receive your application, we have 60 days to process it and submit it to SBA. Our plan is to do it as fast as possible, but we will have several to work through. Currently, our plan is to have a dedicated team that will process them. The deadline to apply for forgiveness is October 31, 2020.
There is currently $100 billion available in the PPP as of this last weekend, so if you know someone who has not applied, feel free to send them our way.