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New FAQs on PPP loan forgiveness released
The Small Business Administration (SBA) Tuesday released a new set of FAQs focused solely on forgiveness for paycheck protection program (PPP) loans. NAFCU continues to urge the SBA and Congress to simplify the loan forgiveness process for smaller loans and is fighting to have these provisions included in the Phase 4 coronavirus relief package.
The new FAQs provide guidance for PPP lenders and borrowers and provide examples of situations that could impact the forgivable amount of the loan, including some for C-corporations, S-corporations, self-employed individuals, general partners, and LLCs. It is broken down into easy-to-read sections on:
- general loan forgiveness;
- payroll costs;
- nonpayroll costs; and
- reductions.
In addition, the agency released updated figures on PPP approved lending through July 31. Credit unions with less than $1 billion in assets have made over $3 billion in PPP loans. Of note, there is roughly $128.2 billion of funds remaining in the program, which is set to expire Aug. 8.
The Senate's Phase 4 proposal includes a portion focused on small business assistance that would make improvements to the PPP and also allow certain small businesses that have been hardest hit by the pandemic to apply for a second PPP loan. NAFCU is also advocating for the inclusion of S. 4117, the Paycheck Protection Program Small Business Forgiveness Act, in the Senate package.
The association will continue to advocate for credit union priorities to be included in the final Phase 4 package; stay tuned to NAFCU Today for the latest developments. Access NAFCU's PPP FAQs here.