SBA Planning to Ease PPP Forgiveness Process for Most Loans

Currently, the bank holding your Paycheck Protection Program (PPP) is the sole avenue for requesting forgiveness.  However, this week the SBA plans to outline a new initiative aimed at encouraging borrowers with loans of $150,000 or less — accounting for more than 90 percent of the pandemic-era program — to apply for loan forgiveness. The ability to convert PPP loans into grants in exchange for maintaining payroll was a critical feature of the small business rescue. Nearly 7 million of those loans have not been forgiven.

Borrowers can apply for forgiveness any time up to the maturity date of the loan. However, if borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender. 

Small Business Administration to revamp PPP forgiveness in bid to end historic program – POLITICO