PPP Loan Forgiveness Update: Online Bank Portals
This release is yet another regarding the SBA’s Paycheck Protection Program Loan Forgiveness program. As the loan forgiveness process is unpredictable due to constantly changing legislation, many banks previously declined to open an online portal to submit Forgiveness Applications. This was likely in an effort to reduce confusion and ensure applicants were not applying for their loans with outdated forms or assumptions. However, given the difficulty associated with predicting any action by Congress, and any bills related to PPP forgiveness still on hold, some banks have decided to stop the wait and move forward with opening online PPP forgiveness application portals regardless. Specifically, according to insiders, any legislation that may pass the House and Senate will likely include “automatic forgiveness” for loans of less than $150,000.00 by execution of a simple “borrower’s certificate.” While there is ample support for this “short cut reporting,” the House of Representatives has insisted that the legislation for “automatic forgiveness” not be a standalone bill and that a comprehensive bill be considered. This runs contrary to the Senate which prefers to handle the legislation on a much small basis. Please stay tuned to the national media for updates on this legislation or check into the SBA’s website at www.sba.gov and sign up to receive updates from the SBA. We have also found that Forbes and The American Banker are both keeping abreast of the process quite well. A current status can be found at:
Of course, you can always contact your individual bank for both online portal processing and an update on the automatic forgiveness.
Remember: there is no automatic forgiveness at this time and you should plan on being ready to submit your loan forgiveness application because one does not know if and when the Congress will create the “automatic forgiveness” program. If and when you do submit your applications for loan forgiveness, please check for the most up-to-date forms and pay attention to the latest instructions for completing the application, all of which is available on the Small Business Administration website. When applying for forgiveness, a borrower can apply up to 10 months from the end of their covered period. The covered period for each borrower may vary, lasting either 8 or 24 weeks at the borrower’s choosing. We wish you the best in these times and hope to provide further updates in the future to assist you in your business endeavors. Contact Weiss LLP for further information.