If you are one of the millions of fortunate small business owners who obtained a PPP loan in this massive $600+ billion program, it is now time to start getting your ducks in a row to apply for loan forgiveness with the recent SBA release of its template PPP Loan Forgiveness Application, a copy of which is available here.
The Application provides much-needed guidance on how to apply for loan forgiveness and calculate forgiveness amounts, but be aware that additional instructions likely will be forthcoming. The SBA has stated that it will soon issue regulations and guidance to further assist borrowers and to provide lenders with guidance on their responsibilities. It makes sense for borrowers to go ahead and calculate their potential loan forgiveness amounts now based on the Application. The Application includes relatively straightforward instructions for making this calculation. If a PPP loan is not 100% forgiven, the unforgiven amount of the loan will bear interest at 1% per annum for a term of two years, with no loan payments for the first six months.
Following the expiration of the eight-week anniversary of the PPP loan funding date, borrowers should promptly proceed to complete the Application (including PPP Schedule A) and submit it to their lenders. Be patient as it might take up to 60 days for lenders to process a submitted Application and render a decision. Good luck!
Reach out to Perkins Law with your small business formation, transaction, and compliance questions.