Friday, 4 Dec 2020

Small businesses can easily apply for their Paycheck Protection Program loan debt to be wiped out – here’s how

SMALL businesses that received loans of $50,000 or less can now easily apply for their Paycheck Protection Program loan debt to be wiped out

On October 8, the US Small Business Administration in consultation with the Treasury Department released a simpler loan forgiveness application to relieve American’s smallest businesses.

According to the SBA, the agency has approved some 5.2 million loans for a total amount of more than $525billion to American small businesses.

The average loan size was $101,000, adding that 69 percent of those loans were for $50,000 or less.

“Today’s action streamlines the forgiveness process for PPP borrowers with loans of $50,000 or less and thousands of PPP lenders who worked around the clock to process loans quickly,” Treasury Security Steven Mnuchin.

“We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process.”


SBA and the Treasury Department have eased the burden on PPP lenders, allowing lenders to process forgiveness applications more quickly.

The agency began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020.

Applicants who wish to view the simpler loan forgiveness application can click here.

Applicants who wish to view the instruction for completing the simpler loan forgiveness application can click here.

Applicants who wish to view the Interim Final Rule on the simpler forgiveness process for loan of $50,000 or less can click here.

The PPP was authorized as part of the $2trillion CARES Act in March.

Although the program has been rigged with problems – including bureaucratic red tape, technical glitches and alleged fraud.

When the program was first announced many business owners complained that they could not secure a lender, others later found that the restrictions on how the money could be spent were more trouble than they were worth.

Since the start of the coronavirus pandemic many small business owners have closed their storefronts for good due to the lack of revenue and their inability to make ends meet.

Source: Read Full Article

Related Posts