It has been a little while since I provided a PPP forgiveness update.
Mainly because there has been no updates...but here is the latest: The SBA has been accepting PPP forgiveness applications since early August and to date about 96,000 of the 5.2 million loans that were issued have applied for forgiveness (less than 2%.) Many lenders have not fully opened their forgiveness application process as they wait for pending legislation which we discussed in previous emails.
To date of the 96,000 applications sent to the SBA, a whopping ZERO have been processed by the SBA.
At the request of lenders and legislators, the SBA has stated they will start forgiving these loans starting this week. There is no clear answer why the process is so bogged down considering a very small percentage of loans has been submitted for forgiveness.
Legislation is still pending that would make forgiveness for loan amounts below $150,000 much easier. There has been no movement on this legislation and the likelihood of anything passing before the election is fairly remote. However, Speaker Pelosi and Treasury Secretary Mnuchin are still discussing a potential stimulus package so there is still a chance that something may happen sooner.
Bottom line, expect the forgiveness process to be slow as Congress continues to discuss changes to the PPP and lenders continue to navigate the process.
If you need to talk through specific options for your business, Molly, Paula, Myra, and I are here to help. Schedule a 30 minute consultation via Zoom where we will discuss your specific business situation for only $49. If you have any questions, feel free to reach out to any of us or email PPPHelp@EDGeBusinessPlanning.com, and keep checking our emails, blog, and social media for updates.