PPP Loan Forgiveness Update
We are now past the point of the eight-week “covered period” for those who received PPP loans early in the process. Many will elect the 24-week period now available as an option, but for those who wish to stay with the eight-week period, it should be time to apply for loan forgiveness.
The SBA has issued two Applications for Loan Forgiveness: Forms 3508 and 3508 EZ. There’s just one hitch: SBA has not opened their portal to accept Applications from the banks, so most banks have not opened up their portals to accept Applications from their borrowers.
The holdup is the final guidance, which the SBA is still figuring out. And that guidance is needed in a number of areas that lack clarity. Until then, no one can apply for forgiveness of their loan. The good news is, there is plenty of time and any interest accruing on these loans is forgiven along with the principal.
In addition, there is a move afoot to automatically forgive any PPP loans under $150,000. It isn’t clear whether this is going anywhere but… Stay tuned.
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