As reported yesterday, Congress has submitted the Paycheck Protection Program Flexibility Act of 2020 to the President. If signed into law, the SBA will most likely release supplemental conditions regarding the Forgiveness Application and Instructions. Because of this possibility and the fact that some borrowers are approaching the end of their eight-week covered period for Loan Forgiveness, we are recommending that borrowers continue to be patient and wait for new guidance before submitting a Forgiveness Application to their lender.
If you are nearing the end of your eight-week Covered Period, please remember that current SBA guidance regarding PPP loans defers payments for six months and allows application for forgiveness until October 31, 2020. This deferment gives you the opportunity for more time and less rework. Once we are reasonably sure that SBA guidance and the application process will not significantly change, we will update you with specific instructions on how and where to submit your Forgiveness Application.
Today’s events are quickly changing including SBA relief programs. Staying informed is vital. We strongly encourage that you document and track any expenses that are paid by PPP loan proceeds in accordance with the PPP Forgiveness Application and Instructions.