Our previous communication addresses the recent suspension of the PPP due to inadequate funding. For our clients that did not receive funds or approval prior to the suspension, we will continue to work on completing applications and submitting to lenders in anticipation of additional funds being made available under the PPP.
For those that received funds or approval before the PPP suspension, focus must now shift. These funds will help many businesses cover critical payroll and other expenses for several weeks. However, the real stimulus is the forgiveness of all loan proceeds received.
For forgiveness, PPP recipients are required to submit documentation to their lenders following an eight-week period beginning with the loan origination. This documentation will determine the portion of the loan forgiven. Proceeds not forgiven are required to be repaid over two years.
The CARES Act includes multiple provisions that can further limit the amount of the loan forgiven. These provisions require immediate considerations from businesses along with the supporting documentation to ensure each applicant receives the maximum amount of forgiveness possible.
We believe applicants that submit complete, supported forgiveness information will receive the maximum amount of forgiveness possible and have their forgiveness processed quickly.