​Should You File for PPP Loan Forgiveness Now or Wait?

​Should You File for PPP Loan Forgiveness Now or Wait?

10/5/2020 Tags: Announcements, In the News, COVID-19, PPP

Through the Paycheck Protection Program, the Small Business Administration lent $525 billion to more than 5 million borrowers in just a few months’ time.

But now the process to forgive those loans has started, and the SBA has been pretty quiet. Although the loan forgiveness process started Aug. 10, there hasn’t been a record of the SBA forgiving a single loan.

The SBA recently said it had received 96,000 applications but didn’t say if it had approved or denied any of them. The 96,000 number is less than 2 percent of the total number of loans granted.

Lenders, for their part, have sent some mixed messages to borrowers. Some have asked businesses to apply for forgiveness now. Those banks are likely hoping to receive forgiveness more quickly to get the loans off their books. Other banks have told borrowers to wait in the hopes there is guidance from the SBA or a legislative solution that speeds the forgiveness process.

So, what’s the right thing for you and your business to do, apply now or continue to wait?

Your best course of action is to talk to your CPA. Together, you can decide what makes the most sense for your situation, and so they can answer any questions you might have.

This communication is intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.

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