(This article contains excerpts from “PPP forgiveness: No need to rush, and other tips” written by Jeff Drew and Ken Tysiac, and published in the Journal of Accountancy)

Although forgiveness for Paycheck Protection Program (PPP) loans is a foremost topic on the minds of borrowers and the CPAs who advise them, experts are saying borrowers should not rush to apply for forgiveness.

Here’s Why

1. Long-expected FAQs expected to clarify many PPP-related issues are still awaited from the U.S. Small Business Administration (SBA) and Treasury. In addition, the loan forgiveness application has not been updated to reflect the recent five-week extension of the program’s deadline to August 8th, 2020.

2. A big reason for these delays is that Congress is debating a new round of COVID-19 relief, which is expected to include a second PPP initiative more targeted than the first one. Those discussions also may include major changes relaxing the forgiveness requirements for the smallest loans, possibly those up to $100,000 or $150,000.

3. The SBA and Treasury are not expected to release the expected 25 to 30 FAQs before President Donald Trump signs new relief legislation. Even if the FAQs do come out, the SBA indicated it would not begin accepting PPP forgiveness submissions from lenders until a new software-as-a-service platform currently under development goes live August 10th, 2020.

TRP Sumner is keeping abreast of all the latest information regarding the PPP loan forgiveness process. As soon as the various issues are clarified by the SBA and the US Treasury Department, we will be in contact with our clients and our communities. Give us a call if we can answer any of your questions about this or other issues surrounding your business. Please visit our webpage at www.trpsumner.com for more information on the COVID-19 articles we have posted over the past several months.