Even though banks are making the PPP Loan Forgiveness application available to clients, our recommendation is to wait before filling out the application. There are a few reasons why we suggest waiting:
- The SBA and Treasury are in the process of completing the final guidelines on loan forgiveness. The timing on when the guidelines will be available is uncertain. If you start the application too soon, upcoming changes may make the process more time consuming for you.
- Payroll companies are currently creating custom reports that comply with PPP guidelines and that will make the application process easier. These reports will not be finished until after final regulations are issued by the SBA and Treasury.
- You are not required to make any loan payments before you apply for forgiveness or until ten months after your covered period ends. This allows you to wait for the final guidelines before applying for forgiveness.
- There is currently a bipartisan bill under review in Congress that would forgive all PPP loans with balances up to $150,000. If this legislation passes, the application process would be greatly streamlined for most of our clients (the application would consist of a one-page form).
We recommend that you complete the loan forgiveness application right away only if there is a reason for urgency. For example, if you are selling your practice or closing by the end of the year, you will likely want to go ahead and complete the application. Otherwise, we recommend you wait until the final SBA and Treasury guidance is provided, banks have their application process aligned with final guidelines, and payroll companies have time-saving payroll reports that you can use with the application.
We will come out with more information on the PPP Loan Forgiveness application and items to know after the final guidelines have been provided. In the meantime, please let us know if you have any questions. We hope you stay safe and healthy.