The SBA announced a few days ago that they will begin accepting loan forgiveness applications from lenders as soon as August 10th — but don’t be too quick to apply.
The Journal of Accountancy lists many reasons it may make more sense to wait to apply for forgiveness, and this article has been echoed and shared widely by the American Institute of CPAs.
“A big reason for these delays is that Congress is debating a new round of COVID-19 relief, which is expected to include a second PPP initiative more targeted than the first one, said Mark Peterson, the executive vice president who heads the AICPA’s advocacy team in Washington, D.C. Those discussions also may include major changes relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000.”
(More on the possible forgiveness relaxation in a recent blog post of mine. And more on the PPP as-it-stands in yesterday’s Forbes article by Bruce Brumberg.)
SBA and Treasury are not expected to release the expected 25-question FAQ for which we’ve been waiting for over a month — not before new relief legislation is signed. Congress is trying to finalize this before going on recess August 8th.
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