Paycheck Protection Program (PPP) Loan Update
Many of our Illinois Great River Conference churches received a Paycheck Protection Program (PPP) loan. There has been a lot of information about how to obtain the loan, but little about the forgiveness of the loan.
Forgiveness—by way of converting these loans into a grant—is one of the most valuable features of this program. The PPP was created through the CARES Act in response to the pandemic.
Recipients must apply for forgiveness when the eight-week period for their loans ends. However, information regarding how to do this remained limited for weeks.
Guidance was finally released late last week and that’s good news. Many of the loans are close to or past their halfway point. The time is coming soon to apply for the forgiveness.
PPP Loan Good Faith Certifications
There has been concern on how the SBA will determine the good faith certifications. Under the CAREs Act, all eligible recipients must make a good faith certification that, among other things, the uncertainty of current economic conditions due to the COVID-19 pandemic makes their respective loan request necessary to support their ongoing operations.
There is good news for churches that received a loan of $2 million or less. The US Small Business Administration says it will not inquire further about those recipients’ “good-faith certifications.”
Any borrower that received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith. (From the SBA FAQs #46)
SBA Forgiveness Application and Other Helpful Links
The SBA issued the PPP forgiveness instructions and application along with an updated PPP FAQ. Also helpful is the SBA Website and the updated Wespath PPP FAQs.
Peace to you and be safe,