We know many of you are still in the process of submitting for PPP Loan Forgiveness and wanted to encourage you to listen to our webinar, PPP Loans Audits Reporting Tools, Tactics and Strategy. We had two experts share insight into the PPP Loan Forgiveness process and provide tips for how to navigate it more easily.
As of the latest update from the SBA (May 24, 2001), the dollar amount of loans forgiven is $279.4 billion and under review is 81.5 billion. There is also $1.0 billion not forgiven, and over $159.1 billion in applications not yet received.
In a news story last week, SBA Administrator Isabel Guzman noted in an interview that the SBA is exploring new ways to streamline the PPP Loan Forgiveness process for “…loans for $150,000 to $2 million.” Borrowers of loans up to $150,000 can submit the 1-page PPP loan forgiveness application which is the PPP Loan Forgiveness Form 3508S. To download the forms for Loan Forgiveness you can go here.
PPP borrowers are eligible for full loan forgiveness so long as they use at least 60% of loan proceeds for payroll expenses, with no more than 40% of loan proceeds going to eligible non-payroll expenses. Keep in mind you will need to submit an application for forgiveness directly to the lender that provided your PPP loan.
If the SBA undertakes a review of your PPP loan application, your lender will notify you of the review and, ultimately, of the SBA’s review decision. Nonprofits or any business owners who have a PPP Loan Forgiveness request denied have the right to appeal those SBA loan decisions.
We recommend too that you print out all the loan forgiveness forms that apply to you to have as a reference if you complete them online. Gathering all your payroll information as well as ensuring you have a listing of how the funds were expended prior to starting the loan forgiveness application will be valuable as well.
Keep in mind as well, we’re always happy to walk you through how MIP Fund Accounting gives users access to a scalable, configurable fund accounting solution. From the general ledger and accounts payable to payroll, human resource management and more, you can choose the features you need today with the flexibility to add more as your organization grows. If you would like a demo of the power of MIP, you can request one here.