For businesses who have been approved to receive, or have already received funds from the Paycheck Protection Program, the next question to begin addressing is, how will you calculate your loan forgiveness? Lenders are also expected to perform a good-faith review of the borrower’s calculations and supporting documents concerning amounts eligible for loan forgiveness.
Given the most recent SBA guidance, it has become clear that borrowers of any size, including under
$2 Million, will have a responsibility to ensure necessity, prove eligibility and provide thorough
documentation of usage to support loan forgiveness for SBA review.
In addition, lenders must also confirm receipt of documentation from borrowers to aid in verifying payroll
and nonpayroll costs. Lenders are also expected to perform a good-faith review of the borrower’s
calculations and supporting documents concerning amounts eligible for loan forgiveness. The lender must
also issue a decision to SBA on the loan forgiveness application no later than 60 days after receipt of a
complete loan forgiveness application from the borrower. The SBA will, subject to any SBA review of the
loan or loan application, remit the appropriate forgiveness amount to the lender, no later than 90 days after
the lender issues its decision to SBA.
blum has been on the forefront of interpreting PPP guidance and providing trusted resources for clients
to keep them apprised of constant changes, and providing the most up-to-date information to assist in
calculating loan forgiveness. Our team is working with clients to assist them with navigating through
compliance requirements of the loan forgiveness program, to ensure forgiveness is received, help expedite
the loan forgiveness process and provide a reliable and trusted source of information.
Our advisory services may look at the following areas to maximize loan forgiveness:
If you would like additional information, please contact us via the form below.