The SBA just announced this week the opening of their Direct Forgiveness Portal at https://directforgiveness.sba.gov/ that will launch on August 4, 2021 for loans of $150,000 or less. The borrower’s bank will need to opt in to this program and so far, over 600 banks have elected to participate. This will enable about 2.17 million borrowers to apply through the portal, which represents 30% of loans $150,000 or less that have not yet submitted for forgiveness. The SBA has put in place a customer service team to answer questions and directly assist borrowers with their forgiveness applications, whether they are…
Posts tagged as “PPP Loan”
On December 27, 2020, President Trump signed the Consolidated Appropriations Act, 2021. This is an Act that is signed each year, thus the 2021 suffix, and basically includes the federal government’s budget for 2021. It also includes a large section of COVID-19 related benefits for businesses. The following is a summary of what has passed. It is a bit lengthy of a “summary,” but all good stuff. FFCRA Sick and Family Paid Leave The FFCRA tax credit has been extended through March 31, 2021, although the employer mandate has not been extended. This means that an employer can decide whether or not…
On October 2, 2020, the Small Business Administration issued a five page Procedural Notice 5000-20057 regarding “change of ownership”. This is a very concerning topic at this point in the game as many companies have changed ownership in one form or another due to the slow-down, since receiving their PPP funding. Here is what is considered a change of ownership; 1. 20% or more of the common stock or ownership interest is sold or transferred, including to an affiliate or an existing owner of the entity, 2. 50% or more of the assets (measured by FMV) is sold or transferred, whether in…
Both the SBA and the U.S. Treasury have been busy throughout the month of August. We have seen the loan approval process close on August 8, the loan forgiveness application process open on August 10 (sort of), forgiveness rules clarification with the August 11th update of their FAQs, and a new interim final rules published on August 24th. The closing of the PPP loan program is probably long overdue. After several extensions of the program, it appeared that the demand for the loan funds had come to a halt and there was not much of a demand for it in…