Has your Company achieved full forgiveness of your Paycheck Protection Program (PPP) and you are left wondering, now what? You are not alone, and experts are saying there is no rush to apply for forgiveness either. The SBA has not yet updated the loan forgiveness applications to reflect the 5-week application deadline to August 8th, nor have the FAQs been updated to provide Borrowers with additional guidance. There are still many questions surrounding FTE calculations, what can be included as utility expense, clarification for self-employed individuals, etc. The SBA has also indicated it will not start accepting forgiveness applications from lenders until a new software-as-a-service platform goes live August 10th. Borrowers have 10 months from the last date of the covered period to apply for forgiveness. If a forgiveness application is not filed prior to 10 months after the last date of the covered period, the amount advanced turns into a loan.
What is the delay with the FAQs? With the ever changing environment and rise in COVID cases, Congress is debating a new round of COVID-19 relief, which would be a more targeted effort. The SBA does not want to release the updated FAQs until President Trump signs the new relief legislation. Congress is working to finalize the new relief package prior to their recess starting on Aug 8th. A new relief package could result in changes to the forgiveness application which could result in delays for the new software-as-a-service platform. There are even some reports that Congress is considering automatic forgiveness for some of the smaller loans. Stay tuned, CironeFriedberg will keep you updated as things progress over the next few weeks.
CironeFriedberg CironeFriedberg’s primary client base is in Connecticut and neighboring Dutchess, Putnam, and Westchester counties in New York. The firm was established in 2016 with the merger of Bethel-based Equale & Cirone, LLP, established in 1999 and Bridgeport-based Friedberg, Smith & Co., PC, founded in 1945. Services include: Tax, Accounting & Assurance, Consulting, Forensic Valuation and Litigation Support.
If you have any questions, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford), or email us at email@example.com.