The Small Business Association (SBA) has said that it began approving PPP loan forgiveness applications on Friday, October 2nd.
More than 5 million small- to medium-sized businesses (SMBs) received $525 billion from the Paycheck Protection Program (PPP) since March. But the SBA program that promised loan forgiveness as long as SMBs used 60 percent toward payroll and 40 percent to other allowable expenses, hadn’t forgiven a single loan through the end of September. Financial institutions began submitting applications for loan forgiveness in early August but had not received a response. The SBA has acknowledged according to Politico that it has received 96,000 forgiveness applications, about 2 percent of the total loans, but none had been approved or denied as of the end of September. The news that the SBA has begun approving the forgiveness applications without further delay is good news for businesses and financial institutions.
By Mark Friedlich, Esq., CPA.