2020 is coming to a close (yay) and those businesses that applied for and received PPP loan proceeds, need to understand the mechanics of loan forgiveness- some changes were made that you should be aware of.
How do I ensure I receive the forgiveness that I am entitled to and understand the process?
Your PPP loan stretched for 24 weeks beginning on the date you received the proceeds (a loan received before June 8 had 8 weeks).
Covered expenses under the loan are payroll costs, utilities costs, mortgage interest amounts, rent and transportation. Covered expenses are forgivable.
Employers can apply for forgiveness at any time before the maturity of the loan (check with your lender).
Submit documentation that supports the expenditures on the covered expenses (work with your accountant or bookkeeper for supporting documents).
Lenders have up to 60 days to review your forgiveness application. Employers could receive a full or partial forgiveness or could be denied. Documentation is important.
The SBA (Small Business Association) has up to 90 days to evaluate your application and your lender's decision.
Your lender will let you know the result of your application.
If you don't agree with your lender's decision, you can ask the SBA to review once again. If you don't agree with this result, you can appeal the decision.
If you have questions at any stage of the forgiveness process, reach out and work with your lender.