If your integration firm received a small business loan via the Paycheck Protection Program (PPP) of less than $50,000 and have been struggling with a complicated forgiveness application, you’re in luck after the U.S. Small Business Administration (SBA) late last week released a simpler loan forgiveness application for those smaller loans.
The application for forgiveness is a tidy two pages, and another document lays out instructions for those borrowers on how to fill the form out.
The SBA began approving forgiveness applications and remitting forgiveness payments to lenders on Oct. 2. This comes after banks had concerns about the process of converting the loans into grants.
According to the U.S. Treasury, the Paycheck Protection Program has doled out over 5 million loans to a tune of $525 billion Those loan proceeds have helped to support 51 million jobs.
However, most of the loans – nearly 3.6 million – were for $50,000 or under. According to the SBA, they account for almost 69% of the loans given out and 12% of the total dollars loaned. The overall average loan size was $101,000.
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The PPP was one of the more popular pieces of the CARES Act, a $2.2 trillion economic relief package passed in March that included an original $350 billion for the creation of loan program.
However, that funding was fully allocated within two weeks, so Congress approved another $320 billion for the program in April.
The program – which closed in early August – allowed companies with fewer than 500 employee to apply for a loan that could be forgiven if the company kept a certain number of employees on the payroll.
Congressional leaders and the Trump Administration are in talks over another stimulus bill that could include a revival of the program, but there are no indications that a deal will be done before the Nov. 3 election.
