The Small Business Administration (SBA) has recently told lenders they will start accepting Paycheck Protection Program (PPP) loan forgiveness applications starting August 10, 2020. The SBA had originally stated that borrowers could apply for forgiveness as soon as they had used up all the loan money they wanted to receive forgiveness for. However, the SBA has now chosen to not process any applications until August 10, 2020.
The SBA pushed back the date they would accept applications due to some pending legislation. This legislation is intended to offer further support and provide more economic stimulus due to the COVID-19 pandemic. Since this new legislation will likely include several changes to the PPP loan forgiveness method, the SBA has decided to take these changes into account and will publish one last set of guidance before accepting the forgiveness applications.
Although the SBA has currently stated they will accept the applications beginning August 10, there is a possibility the date will be pushed back, depending on the how many changes the new legislation provides.
Although lenders are not accepting applications at this time, borrowers can still gather all documents and prepare everything for submission. For more information on the application process, contact us.