PPP Loan Forgiveness Process Update
If you received a PPP loan and are thinking about beginning the process of requesting forgiveness on the loan you may want to consider waiting a few weeks until the actual process gets a little more defined – it could be well worth your wait. HEALS Act that’s currently being considered in Congress includes provisions that would simplify the process for recipients of $150,000 or less in loan funds. Under this simplified approach, the recipient would submit a signed one-pager attesting that they’ve complied with the provisions of the law that would warrant forgiveness. They’d also need to save records for 3 years and provide the documents if requested. But here’s the caveat. The HEALS Act is “proposed” legislation at this point – which means it’s far from law. There’s still plenty of “wet paint” on the law as the various parties push for their concerns to be addressed and there are several competing bills also proposed on this same topic that are running parallel to the HEALS Act, all with varying levels of bi-partisan support. Until it’s done, it’s not yet done. Something will likely emerge in the next few weeks but it’s not clear what that will be at the moment.
You may also have noticed that lenders are hesitant to start the loan forgiveness process until this picture becomes more clear as it could represent a significant time savings for them, and for loan recipients if the simple affidavit approach is approved.
So if you want to move ahead now, there is a process you can use. Just get the paperwork and supporting detail to your lender. But it does appear some form of simplified process may become available soon and it might make sense to see what that is before proceeding to seek loan forgiveness.
Disclaimer: For informational purposes only. Does not constitute legal, financial, or other advice. Consult with a professional before taking any action.