The Small Business Administration has released detailed steps businesses can take to get their Paycheck Protection Program (PPP) loans forgiven.
The U.S. Small Business Administration has released a loan forgiveness application and instructions for the application. Click here to see both.
The documents released late last week will help small businesses seek forgiveness at the conclusion of an eight-week covered period, which begins with the disbursement of the loans.
The loans are meant to be forgiven if businesses use the money to keep workers on their payrolls.
The form offers “step-by-step” instructions on how to perform calculations required by the federal CARES Act to confirm eligibility for loan forgiveness.
In order to receive loan forgiveness, a borrower must file SBA Form 3508, Paycheck Protection Program Loan Forgiveness Application.
“The approximately 650,000 small businesses and non-profits throughout the Great Lakes approved for PPP loans now have the guidance they need to get their PPP loans forgiven,” Rob Scott, an SBA administrator for the Great Lakes region, said in a statement.
“As we have for several weeks in response to this pandemic, the region’s seven district offices will be working closely with lenders to ensure they are equipped to respond to their borrowers’ questions about the forgiveness details,” added Scott.
Day Air Credit Union guided 175 Paycheck Protection Program loans to approval since the program was offered, about $6 million total, with the average loan amount at $34,200, the credit union said.
Most of those who received the funds with the credit union’s help have been sole proprietors and 1099 contractors (or independent contractors).
Day Air said it has focused on sole proprietors, 1099 contractors, and small businesses with under ten employees.
“The demand and volume of interest for this program was overwhelming, and it’s been a fast and furious few weeks to accomplish this level of loan funding in such a short timeframe,” said John Theobald, Day Air senior vice president and chief lending officer.
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