Why You May Not Want to Rush Your PPP Loan Forgiveness Application
In a nutshell, details are still being worked out by the Small Business Administration (SBA), the U.S. Treasury Department and lenders. Until those details are finalized, it may be wise to wait. Here are five factors affecting the application process:
- Most lenders are not ready to process forgiveness applications and are building technology tools to help streamline the process.
- Since the covered period was extended to 24 weeks, it may be prudent to use that extra time to fully maximize the funds for forgivable expenses.
- Payroll providers, like lenders, are developing custom reports to comply with PPP guidance but are waiting on final guidance from the SBA and Treasury.
- Borrowers are not required to make any loan payments until they apply for forgiveness or until 10 months after their loan period ends.
- The application process may be easier than expected if you qualify for the SBA Form 3508EZ. (Click on the link to access the checklist for using the SBA Form 3508EZ.)
As in all things, it is best to evaluate your own unique circumstances when deciding when is the right time to apply. Schedule a call with your BMSS professional to discuss what options may be best for you and your company.