PPP Forgiveness Updates and the Real Deadlines

We know that forgiveness for your PPP loan is the hot topic on the minds of our clients, however it’s best to take the time to make sure there is as much information as possible to maximize loan forgiveness.

What has changed?

• The SBA and Treasury are due to clarify many issues and have yet to update the loan forgiveness application to reflect the recent changes.
• Congress is trying to hammer out a new round of COVID-19 relief, which is expected to include a second PPP initiative more targeted than the first one.
• There are discussions about major changes like relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000.
• The SBA said it would not begin accepting PPP forgiveness submissions from lenders until a new software-as-a-service platform currently under development goes live August 10th.

What questions remain?

• There are questions remaining about what qualifies as a utility under the PPP guidance. We know that trash collection, water, electricity, etc., are included but are awaiting guidance as to business-specific utilities. Can transportation costs such as fuel for a business vehicle be included? What about Internet services? With so much remote work going on, will that qualify as utilities under the PPP?
• Many exceptions to full-time-equivalent (FTE) rules need to be clarified like when an employee voluntarily requests a reduction in hours. The PPP was designed to help employers keep paying their employees during closures and times of reduced revenue. Consequently, employers who reduce their workforce generally will see a reduction in their PPP forgiveness eligibility amount. There are exceptions! Check out our prior article on employees offered a chance to return to a position but refused. 
• Clarification needed for self-employed borrowers. PPP guidance states that self-employed individuals must compare their 2020 income with their 2019 income to determine their maximum eligible compensation.

Reach Out To Us: The PPP forgiveness applications are extremely detailed, and the final rules are uncertain in some areas. Documentation is critical regarding any facts that could become an issue related to forgiveness. Let us help you through the process. Our PPP Professional team can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . We can also help you with EIDLs, business strategy, new projections, budgeting and cost analysis.