SBA PPP Small Business Loan Forgiveness Deadline Updates
Wednesday, January 6, 2021:
- PPP Deductions – IRS Guidance: The Internal Revenue Service and the Treasury Department released guidance today on claiming deductions for expenses associated with Paycheck Protection Program loans that have been forgiven. Source: Accounting Today, January 6, 2021.
Monday, January 4, 2021:
- Flushing Financial Corporation, the parent holding company for Flushing Bank, will again participate in the Paycheck Protection Program (PPP) to provide capital to small businesses within the communities it serves, the organization says. Flushing Bank will post PPP loan application details here once the latest SBA guidance surfaces.
Wednesday, December 30, 2020:
- Nav, which offers a financing platform for small businesses, has launched a new:
- Reliant Funding and Biz2Credit have partnered to secure a second round of PPP funds for its prospects and clients, using Biz2Credit’s Biz2X PPP platform. For more information, or to apply for a PPP loan, visit http://ReliantPPP.com.
- Lendio plans to hire 500 employees by the end of January 2021. PrincePerelson, a Utah-based recruiting firm, is assisting the effort. Positions are available in the Salt Lake City, Utah, and Long Island, New York, regions. The new hires will assist Lendio’s PPP efforts. Lendio helped to facilitate more than 100,000 PPP loan approvals to small business owners in 2020.
Sunday, December 27, 2020:
- Trump Signs Bill: President Trump signed a sweeping pandemic-aid bill on Sunday night ending a standoff with Congress and paving the way for millions of Americans to get economic relief as the coronavirus pandemic surges across the country. Source: Wall Street Journal, December 27, 2020.
- Related: The bill includes $284 billion in funds for the Paycheck Protection Program (PPP). Businesses that already received a PPP loan will be eligible to get a second one under the new terms. Some of the PPP funds will be set aside for the smallest businesses and community-based lenders. Source: The Hill, December 20, 2020.
Wednesday, December 23, 2020:
- Fewer PPP Lenders Expected: If Congress and President Trump can agree on a second round of PPP lending, small businesses should expect fewer lenders to participate in the second round of Paycheck Protection Program loans. The reason: Some lenders are suffering from ‘PPP fatigue’ because of the program’s chaotic rollout and ever-shifting regulations earlier this year. Source: Silicon Valley Business Journal, December 23, 2020.
Tuesday, December 22, 2020:
- President Trump, in a video posted to Twitter, urged congress to adjust the bill in several ways — including boosting per-person checks from the current level of $600 to a new level of $2,000 per person ($4,000 per couple). Democrats appear to support the proposed per-person change. But Trump’s demand to cut other funds from the pending legislation could face additional hurdles. Source: USA Today, December 22, 2020.
Sunday, December 20, 2020:
Lawmakers late in the day released a long-awaited $900 billion coronavirus relief bill that is expected to be passed by Congress on Monday, December 21 and potentially signed into law by President Trump. The bill, according to this article from The Hill, includes…
- Paycheck Protection Program: Will be refueled with $284 billion in funds. Businesses that already received a PPP loan will be eligible to get a second one under the new terms. Some of the PPP funds will be set aside for the smallest businesses and community-based lenders.
- Stimulus checks: A second round of direct payments to Americans — up to $600 per adult and per child. Also the bill will allow U.S. citizens who are in households that also include non-citizens to receive the payments.
- Unemployment benefits: Two expiring CARES Act programs — the Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation — were extended for 11 weeks. Also, Congress will add $300 to all weekly unemployment benefits. Workers who rely on multiple jobs and have lost income will also be eligible for a weekly $100 boost as well.
- Plus housing assistance, educating, testing and other benefits.
- Source: The Hill, December 20, 2020.
Saturday, December 19, 2020:
- Senate Minority Leader Charles Schumer (D-N.Y.) and Sen. Pat Toomey (R-Pa.) reached an agreement late this evening on language to curtail the Federal Reserve’s special lending authorities, setting the stage for passage of a coronavirus relief deal and omnibus spending package and new PPP funding for small businesses as early as Sunday, December 20. Source: The Hill, December 19, 2020.
Thursday, December 17, 2020:
- Democrats and Republicans are negotiating a potential $900 billion coronavirus relief package. The proposal features $250 billion in PPP funding as part of more than $320 billion for the Small Business Administration. The emerging $900 billion deal largely hews to the outline of a $748 billion proposal unveiled by the bipartisan House Problem Solvers Caucus and Senate moderates. But an official agreement has yet to be announced. Sources: Bloomberg Radio, The Hill, December 17, 2020.
- Fully 90 percent of small businesses have spent all of their PPP funds, according to a Goldman Sachs survey. Source: CNBC, December 15, 2020.
Wednesday, November 4, 2020: Congress should pass a new economic-relief package this year, Senate Majority Leader Mitch McConnell said, as prospects for Democrats’ multitrillion-dollar stimulus bill faded along with their chances for full control of the government. McConnell says he supports aid to schools, hospitals and small businesses, but not a more sweeping Democratic proposal. Source: The Wall Street Journal, November 4, 2020.
Thursday, October 14, 2020: Wells Fargo fired more than 100 employees over alleged relief fund abuse. Source: Bloomberg, October 14, 2020.
Friday, October 9, 2020: Small business owners who took out a Paycheck Protection Program (PPP) loans of $50,000 or less will have a simpler process to follow to seek loan forgiveness, the SBA and Treasury Department said. Source: Silicon Valley Business Journal, October 8, 2020.
- Here is the simplified loan forgiveness application
- Here are the application instructions
- Here is the Interim Final Rule on the simplified forgiveness process
Tuesday, October 5, 2020:
- PPP Loans and Small Business Mergers, Acquisitions: The SBA is now allowing lenders — under certain conditions — to approve the sale or merger of companies that took Paycheck Protection Program loans. The new guidance, issued Oct. 2, means that not all mergers or acquisitions have to receive SBA approval before going forward, although borrowers and buyers still need to adhere to specific rules. The lack of guidance — and the requirement that SBA approve all deals in advance — had caused headaches for some small-business owners. Source: Silicon Valley Business Journal, October 5, 2020.
Friday, September 11, 2020: The chances of a second round of Paycheck Protection Program loans — or any small-business stimulus legislation from Congress — is beginning to fade as the U.S. presidential election approaches. Source: Silicon Valley Business Journal, September 11, 2020.
Tuesday, September 8, 2020: JPMorgan Chase is investigating the role its employees may have played in potential abuse of Paycheck Protection Program loans and other pandemic relief programs. Source: CNN, August 8, 2020.
Tuesday, September 8, 2020: Senate Republicans, after weeks of daily phone calls, are trying to finalize a smaller, second coronavirus bill that is expected to include a weekly federal unemployment payment, another round of PPP funding and more money for testing and schools, as well as liability protections against coronavirus-related lawsuits. Update: The legislation was voted down and failed to move forward. Source: The Hill, September 8, 2020.
Tuesday, September 1, 2020: Thousands of PPP loans were awarded improperly to firms that already had received a PPP loan or were barred from doing business with the federal government, a House oversight committee concluded in a report. Source: USA Today, Sept 1, 2020.
Tuesday, August 18, 2020:
- PPP and Health Care Benefits: The Small Business Administration has released updated guidance on the Paycheck Protection Program related to payment of fees to third parties as well as health care benefits. Source: ThinkAdvisor, August 17, 2020.
Saturday, August 8, 2020:
- PPP Loan Forgiveness FAQ: The Small Business Administration (SBA), in consultation with the Department of the Treasury, introduced this PPP Loan Forgiveness FAQ for small businesses.
- Deadline: The deadline to apply for a Paycheck Protection Program (PPP) loan is August 8, 2020
Tuesday, July 28, 2020:
- Potential PPP Changes: The HEALS Act, unveiled by Republicans in the U.S. Senate, includes several potential changes to the Paycheck Protection Program. Chief among them, according to Silicon Valley Business Journal:
- Automatically forgiving PPP loans under $150,000.
- Simplified forgiveness for loans between $150,000 and $2 million, stating that those borrowers are also not required to submit to the lender certain documentation but must complete the required certification and retain records for three years, and that lenders must review the application and submit it to the agency.
- $190 billion to continue to make original PPP loans and to fund a second PPP loan to eligible businesses.
- Those second PPP loans would be open to small businesses with fewer than 300 employees with at least a 50% reduction in revenue. The maximum size for a second loan would be $2 million, and small businesses would only be able to receive $10 million total across both loans.
- A $25 billion set-aside for small businesses or organizations with 10 or fewer employees and a $10 billion set-aside for loans made by community lenders, which include community financial institutions and those with assets of less than $10 billion.
- Source: Silicon Valley Business Journal, July 28, 2020.
Read earlier PPP updates by visiting the next page….