Top 10 Things to Know About PPP Forgiveness
Our Best PPP Advice: Stay in Touch With Your Lender and Accountant.
1. Hopes have dried up that Congress will automatically forgive loans under $150,000. SBA released a streamlined PPP loan forgiveness application on October 2nd for some loans under $50,000. They also began approving PPP forgiveness applications and remitting forgiveness payments to lenders for PPP borrowers on October 2, 2020. 

2. Most Metro Atlanta lenders have begun the PPP forgiveness application process and have begun to receive approval from the SBA, but the process is slow going.

3. Loans up to $50,000 represent 67% of the 5.2 million loans approved under the PPP. Those loans account for $63 billion, or 12% of the $525 billion in PPP loans.

4. While most banks have opened their portal for accepting a forgiveness application, they don’t have a statutory requirement to begin accepting forgiveness applications by a certain date.

5. Banks have 60 days to consider a forgiveness application before submitting a forgiveness determination to the SBA and then the SBA has 90 days to review the application and approve or request additional information. 

6. The new application provides a safe harbor for the smallest of PPP borrowers with one or more employees other than the owners who could not maintain the same level of full-time employees during their loan's covered period.

7. For more info, visit the SBA website and refer to Release Number 20-81.
  • Click here to view the simpler loan forgiveness application.
  • Click here to view the instructions for completing the simpler loan forgiveness application.
  • Click here to view the Interim Final Rule on the forgiveness process for loans less than $50,000.

8. Experts believe that 30% of PPP borrowers will have submitted their forgiveness applications through their lenders by the end of November, and 40% by year-end. The rest of the 5.2 million PPP loans totaling $525 billion will be hitting the SBA system in the coming months.

9. Businesses have 10 months after their covered period expires to submit a forgiveness application and interest at 1% starts on the day it is disbursed.

10. Buying or selling a company that took PPP money has complicated issues in accounting for the debt and potentially forgiveness implications.
Your Chamber can connect you with a financial professional that can assist you with:

  • Access to capital
  • Options if you no longer qualify for bank loans due to COVID.
  • Help in navigating these other options of alternative lenders, factoring, mezzanine debt, equity, vendor finance, etc.
  • Using an external partner to help prepare for seeking capital
  • Issues developers and landlords face in sustaining a business showing no revenue for an extended period vs the challenge of attracting another operation with the credibility, track record and management skills to run a successful business
  • Landlord and tenant standoffs regarding rent in arrears that continues to accrue while businesses and restaurants remain shut, and issues regarding a deferral or discount.
This list was created by the members of the GNFCC Economic Recovery Task Force – Cash Flow & Liquidity.

Task Force Members Include:
Chair - Alan Najjar, Smith & Howard
Danielle Cheung, Bank of America
John Herbert, Herbert Legal Group
Doug Higgins, United Community Bank
Linda Coyle, LGE Community Credit Union
Matt McClure, Synovus Bank
Matthew Thomas, City of Alpharetta
Dr. Karim Godamunne, Wellstar Hospital
Brenda Hall, The Cottage School
James Holmes, Truist Bank
Staci Hutto, Troy University
Lisa Lawrence, LGE Community Credit Union
Danny Vander Maten, Cresa
Alex Girrbach, Greater North Fulton Chamber