#CROSSYOURFINGERS FOR AUTOMATIC LOAN FORGIVENESS & the Paycheck Protection Small Business Forgiveness Act
Exciting news is developing on the Paycheck Protection Program ("PPP") loan front. According to an article from Entrepreneur.com:
"A bipartisan bill called The Paycheck Protection Small Business Forgiveness Act has been introduced into the Senate that would allow small businesses who received a Paycheck Protection Program (PPP) loan of $150,000 or less to obtain automatic forgiveness after submitting a one-page attestation form. The attestation form would be limited to one-page, and the small business would simply attest that the loan is eligible for forgiveness and that the business complied with the requirements of the Paycheck Protection Program found in the CARES Act." [FN1]
According to an article from Forbes.com:
"Practically every lobbying group in Washington is urging Congress to allow borrowers of loans under $150,000 to simply self-certify, or “check the box,” they have used the loan money as intended, and allow borrowers to receive a second PPP loan if they can show year-over-year losses in revenue somewhere between 20% and 50%." [FN2]
This has most banks holding off on processing forgiveness applications. [FN3]
1. See https://www.entrepreneur.com/article/353302
2. See https://www.forbes.com/sites/allbusiness/2020/08/07/treasury-issues-new-faqs-on-ppp-loan-forgiveness/#7aca9d609c65
3 See https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/uncertainty-has-banks-holding-off-on-ppp-forgiveness-process-59785149
Smith Shapourian Mignano PC is available to answer any questions or concerns you may have regarding the PPP.
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