Last week the Small Business Administration (SBA), in consultation with the U.S. Department of the Treasury, released their updated Paycheck Protection Program (PPP) Frequently Asked Questions document to provide additional guidance on PPP loan forgiveness While the updated document does provide us with some supplemental information including caps on owner compensation, the treatment of health insurance and retirement expenses and timing of payroll cycles, there are still areas of the loan forgiveness application process that lack clarity and leave us with many unanswered questions.
As of yesterday, August 10th 2020, the SBA intended to open their portal to receive PPP Forgiveness Loan Applications. Since we expect further guidance from the SBA, we are asking that our clients continue to remain patient over the next couple of weeks. We understand you are eager to apply for PPP loan forgiveness, but it is critical that we have all of the details we need to make the process as easy and efficient as possible, ensure accurate applications are submitted and ultimately, maximize loan forgiveness.
The good news is that the SBA appears to be trying to simplify and accelerate the forgiveness application process so when the time is right, it should be less arduous for PPP loan recipients. In the meantime, please know we will continue to monitor the situation and keep you updated as additional guidance is released. Please contact our office if you have any questions or concerns.