It’s remarkable to think that today is the end of the third quarter, and that we’ve weathered (most of) the storm that this year has brought us. Though we’ve all experienced hardships, we’ve seen our community band together to support each other’s businesses like never before. This has made us all stronger as individuals, but also as business leaders. Our businesses have gotten some relief as the economy rebounds and we slowly get back to “normal.” And there is more relief on the horizon.
Major lenders are urging Congress to consider changes and additions to the existing Paycheck Protection Program (PPP) terms – which means there could be even more guidance and relief on the horizon.
We know that more (potential) changes mean more uncertainty to get your PPP funds forgiven. But there is good news too! We do have CBC clients who received PPP loans, deployed the funds and have already gotten their loans forgiven. It is very possible!
And to keep this momentum going, we wanted to share the below that we know thus far.
1. You Have Time to Prepare: There is not currently a hard PPP forgiveness application deadline. Unless the SBA and Treasury release a set application deadline, you have 10 months after the end of the covered period (whether you opted for 8 weeks or 24 weeks).
2. We Know What Records You Will Need: These include verifying the number of full-time equivalent employees on payroll and their pay rates, for the period the funds were used, and verifying your eligible interest, rent, and utility payments.
3. CBC Will Be Verifying Your Eligibility to Get Your Loan Forgiven: We have ample time to review all the documents for you provide to help you achieve the most favorable outcome. Our goal is to support you and your business, and will complete your calculations and help you make your best case. From there, we will provide our decision to the SBA.
4. Receiving an EIDL Loan in Addition to a PPP Loan will Limit Your Forgiveness Eligibility: Be prepared – those who received grants through the Economic Injury Disaster Loan program and a PPP loan will not be eligible for full PPP forgiveness – but you will still be in a good position. We will help you navigate it.
Guidance from the SBA and the Treasury is constantly evolving. And we’re constantly monitoring it. We pledge to continue to keep you updated as soon as we know more.
While we’re still in limbo, this is the time to gather all the documents. Taking time can help prevent errors on the application and ensure you have all the supplemental documents ready to go. The SBA’s FAQ or the Treasury’s FAQ is a great place to answer any preliminary or additional question you may have.
Thank you again for trusting us with your businesses and for your patience through this unprecedented process.