8/10/20 – PPP Forgiveness FAQs from the SBA
Last week, the SBA issued a set of FAQs regarding PPP Loan Forgiveness. The list contained some new information but did not address some of the most important questions Borrowers have, like what the reduction factors and wage limitations look like if borrowers apply for forgiveness before the full 8 or 24 weeks are up. With the opening of the SBA forgiveness application portal today, many Borrowers may be wondering if they should rush to be first in line to have their loan forgiven. For those Borrowers with loans under $150,000, we would highly recommend waiting since there are proposed bills in Congress that would automatically forgive those loans without having to go through the full application process. For Borrowers with loans over $150,000, we would still recommend waiting since any future guidance would likely impact you the most. This suggestion aligns with what many experts in the industry are saying.
In the meantime, we have created some additional resources to consolidate the current guidance on issues that have been consistently changing, like what the wage limitations are, which application to file, and what is included in owner’s compensation. See below for these new tools.Which-application-to-file