SBA Offers Tips for PPP Forgiveness Applications
CLEVELAND, Ohio – As the Small Business Administration continues to work with lenders on forgiving Paycheck Protection Program, the agency is offering tips to businesses to help them through the process.
Firstly, PPP loan forgiveness is applied for through lenders, not the SBA, the agency writes. While applications can be found on the agency’s website (click HERE), it must be submitted with required information to the lender that provided the loan. The financial institution will then have 60 days to review the application and make a recommendation to the SBA on forgiveness. The SBA then has 90 days to review it and, if approved, remit the amount forgiven to the lender.
In addition, 64% of Ohio PPP borrowers are eligible to use the simplified forgiveness application. The form (available HERE) can be submitted by companies and nonprofit organizations that borrowed less than $50,000. The form has only seven items that need to be completed for a borrower to verify their application.
The SBA also noted that businesses still need to document how PPP funds were spent, including verification of payroll and non-payroll expenses along with their forgiveness application.
Finally, the SBA noted that it has already begun approving forgiveness applications and sending forgiveness payers to lenders, which will then be sent to PPP borrowers.
To help small businesses through the forgiveness process, aid is available at SBA.gov/recovery, while the SBA Resource Partner Network – which includes Ohio Small Business Development Centers, Score mentors, Women’s Business Centers and the Veterans Business Outreach Center – can connect borrowers with one-on-one business advising and technical assistance at no or low cost.
Published by The Business Journal, Youngstown, Ohio.