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PPP Timing of Forgiveness Application Update December 2020

12/11/2020

On June 5, Congress legislated a new date for PPP loan repayment: 10 months from the end of your 24-week period. 

That means the application deadline for PPP forgiveness won’t be until July 2021 at the earliest.  Banks may be pushing you to get the application in because they get paid sooner once the applications are approved. 

Here is where we stand:

For loans over $150,000, we have been working on the applications since early November.  Because there is no overall standard application process directed by the Federal government, each bank is left to develop their own set of criteria.  While the criteria are similar, there have been enough differences to slow down our application process.  Fortunately, we anticipated this and organized our staff by bank so that they would sooner become familiar with each bank’s individual demands, though the process has taken longer than first predicted.  Still, we have helped a number of clients submit information necessary to receive loan forgiveness.

For loans under $150,000 another simplification of the process is possible, but that depends on ongoing discussions in Congress.  For those with loans under $150,000, we advise waiting for the process to possibly become simpler and less risky.  We believe we’ll know more once the next round of coronavirus legislation is passed.  However, that will take time to analyze and adapt our systems.  Nevertheless, we see most if not all applications being completed before June 2021.  That would be well before any deadlines.

Finally, if you choose not to sign an engagement letter with us to have us help you with the application process, bear in mind that we are only able to provide documents to you without any analysis.   Under those circumstances we cannot take responsibility for the calculations or the application itself.  Furthermore, it is not clear that the application can be changed once accepted.  If so, and the PPP forgiveness application results less than 100% forgiveness , that may be your final outcome.

Please contact us if you have any questions.

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