PPP Loan Forgiveness
I received the funds; now how do I get my PPP loan forgiven?
I have had many clients inquire about how to receive Paycheck Protection Program (PPP) loan forgiveness. The SBA has put out over 40 Interim Final Rulings where they have changed the rules governing the PPP. On June 16, 2020, in an attempt to make it easier to obtain PPP Loan forgiveness, the SBA released an easier application form the 3508EZ, which can be used by many small business owners. While it is simpler than the original 3508 form, it is still a complicated process to complete.
As of 7/23/20, only some banks are accepting the loan forgiveness applications. Many banks are overwhelmed and confused by the constant changes happening on a regular basis. As a result, many banks are not currently accepting the loan forgiveness applications. The banking industry is currently lobbying Congress to allow for automatic forgiveness of smaller PPP loans without having to fill out all of these SBA forms. This proposal has not passed yet, but hopefully, it may pass in the near future. Recently, Treasury Secretary Steven Mnuchin also suggested that small PPP loans be automatically forgiven without having to go through this lengthy and confusing loan forgiveness application process. Again no additional guidelines have been published yet; I am generally recommending my clients to wait and see if new law regarding the PPP loan forgiveness will be forthcoming. If and when necessary, there is still time to go through the loan forgiveness application process later this year.