August 31, 2020
As a mom, I spend a fair amount of time gently reminding my kids to do things that they don’t want to do: clean their rooms, eat their vegetables, do their homework. I am constantly telling them not to procrastinate, do it now and it will be done. I try to apply that to myself as well, but yet today I find myself telling you that you might just want to not fill out the PPP forgiveness application today.
Why? Because unlike homework done under the gun, there is a chance the process might become easier. There is currently a proposal in Congress that, if passed, would remove the application requirement for borrowers who received less than $150K. Instead, borrowers would simply be asked to “attest” to their good faith efforts to comply with the loan rules.
Those who borrowed between $150K and $2 million would need to certify that they do have records, but they would not be required to submit any payroll sheets or documentation.
This has not passed yet, and, if it does, borrowers could still be subject to a review and “audit” from the Small Business Administration.
For those of you who don’t want to wait, here are the links to the applications:
- 5 Page: https://home.treasury.gov/system/files/136/3245-0407-SBA-Form-3508-PPP-Forgiveness-Application.pdf
- 3 Page: https://home.treasury.gov/system/files/136/PPP-Forgiveness-Application-3508EZ.pdf
- Or contact your lender for their equivalent form
Want to know if you can use the short form? Here is a link to a checklist that will guide you: https://www.sba.gov/sites/default/files/2020-06/PPP%20Loan%20Forgiveness%20Application%20Form%20EZ%20Instructions%20%28Revised%2006.16.2020%29-508.pdf
As far as I can see, there is no downside to waiting a little to see if this does pass. There is no imminent deadline for applying, and no interest is accruing in the meantime. Keep in mind, though, that applications do need be received within ten months of exhausting the loan funds or December 31st.
Also, this week the SBA announced a few changes to what is and is not forgivable. These are very specific situations that likely do not apply to many of you. I will take a look at those in greater detail a little later, but feel free to reach out if you are already aware of these and have questions.
I know that was a lot to take in. Lucky for you, I don’t plan to test you on this. But if you need some additional tutoring, I am here for you! I also promise to remind you as the deadline for applying approaches. And I will definitely let you know right away about any more changes or if the proposal passes Congress. Follow me on Instagram or like my Facebook page for all the latest.
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