We have had some conversations with clients asking if they should apply as soon as possible for the PPP application. Our response is “There is no need to rush as you might not need it or it might even be easier if you wait”. The AICPA blog post has strong arguments to delay it as long as possible (see link to the post below):
- Lenders are not ready – No forgiveness portals set up or clear instructions
- The longer period 24 weeks might help you with the expenses in case some are disallowed
- There might be updates from the SBA and Treasure on relevant topics, like payroll
- Borrowers are not required to make any loan payments before they apply for forgiveness or until 10 months after their covered loan period ends
- If you meet certain requirements, you use the simplified process SBA Form 350EZ https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-EZ-Instructions.pdf
Additionally, there is still the potential streamline discussion in place for complete forgiveness of loans under $150k, which was already mentioned in an earlier post.