SBA Simple $50k Forgiveness- Due Next Year
On Oct 2nd, the SBA finally released a simple forgiveness process for PPP loans under $50,000. Though many borrowers wanted forgiveness for all loans below $150,000, the under $50k bracket can fill out a one-page, front and back form.
The SBA recently clarified in a FAQ section that borrowers do not need to submit the forms before the “expiration date” of 10/31/2020 that appears at the upper right corner.
According to the SBA, that expiration date was merely put there to comply with the 1980 Paperwork Reduction Act, which was intended to limit the amount of paperwork that government agencies can send to the public, and that as such it has no actual bearing on anything related to loan forgiveness.
To clarify, the SBA stated that borrowers can submit a forgiveness form at any time before the maturation of the loan, which is anywhere from two to five years from origination. But, loan payments will begin ten months after the borrowers “loan forgiveness covered period.”Last modified: October 15, 2020
Kevin Travers was a Reporter at deBanked.