The Current State of PPP Loan Forgiveness Applications

July 27, 2020

If you’re like most PPP borrowers, you’re anxious to apply for loan forgiveness with your bank.

Here’s what we’ve heard from some of the local lenders:

• Lenders are currently encouraging online applications.
• Applications won’t be ready until August.
• They are still waiting for direction from the SBA.

The reasons for the confusing responses is that the SBA has not released its final guidelines to lenders and banks.

Furthermore, the SBA last weekend stated that it won’t be ready to accept forgiveness applications from banks until sometime in August. So, while you may submit your application to the bank, the bank will not submit it to the SBA for at least a few weeks.

The AICPA (American Institute of CPAs) released this blog a few days ago,
“5 reasons borrowers shouldn’t rush their PPP forgiveness applications”.

As the article states, even though you should wait to apply, there are things you can be doing now.

• Review this guide that we created for PPP forgiveness using Form 3508EZ.
• Consider whether you’re eligible to file the short application, SBA Form 3508EZ.
• Start gathering the documentation you’ll need for your lender.

As we’ve been doing up to now, we will continue to update you as we hear or read new information. Please feel free to contact us (contactus@gccpas.net) if you have any questions.