Two years ago, the government started the Paycheck Protection Program (PPP) administered through the Small Business Administration (SBA). The PPP was designed to help small businesses in the face of the COVID-19 pandemic, and funding lasted through 2021. So where is this program today? Here’s what you need to know.
2 Years Helping Small Businesses
Over 11 million PPP loans were issued by the SBA between April 2020 and June 2021. These loans, which could be used to pay employee salaries, helped save jobs and keep small businesses afloat. Additionally, the program was amended last year to target relief for small businesses in rural areas as well as those owned by women and minorities. According to the SBA, these efforts were successful. An additional 1,000 minority-owned businesses and businesses in rural areas accessed relief each day, and an additional 600 women-owned businesses accessed relief per day.
Updates on Forgiveness
Now, it’s no doubt the PPP was a success in providing relief to small business owners, but are these loans actually being forgiven? Well, as of February 2022, the SBA has forgiven over 9 million PPP loans, equating to nearly $7 billion.
Small business owners who received a PPP loan have reached the end of their covered period and are eligible for forgiveness. According to the SBA, borrowers have up until 10 months after the last day of the covered period to apply for forgiveness. After that, the PPP loan payments are no longer deferred, and borrowers will be required to begin making payments to their lender. If you have not heard from your lender regarding PPP loan forgiveness, reach out to them and see if you are eligible.
Applying for forgiveness is relatively simple:
- Determine if your lender is participating in direct forgiveness through SBA
- Compile your documentation
- Submit forgiveness form and documentation to SBA or PPP lender
- Monitor your application for forgiveness
I know it can seem a little daunting to figure all of this out on your own. That’s why all our packages at SDA include answering your questions, without charging you anything extra. We’re here to help you. Have a question about PPP loans? Give us a call today!
-Stanley & Kelly
The post Two Years after the PPP: Where are we Now? appeared first on SDA CPA Group.
