DO I QUALIFY
Loans &
Financing
Learn more
Why Reliant
Funding
See the Difference
Industries
Served
Learn more
Activate
Your Card
Verify Account
Reviews What Others Say
Newsroom View
Blog Visit
Business Network Learn More
Partner with us Learn more
Partner Channels Explore Opportunities
Partner Portal Login
Get to know
Reliant Funding
About Us
Join
The Team
Careers
Connect Contact Us

Loan Forgiveness for Small Businesses: Apply for PPP Forgiveness Soon

The Covid-19 pandemic brought sudden, unexpected closures to businesses worldwide. As government struggled to respond to the rapid spread of the virus and customers mostly stayed at home, many small business owners took advantage of the Paycheck Protection Program (PPP) portion of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Now, PPP forgiveness may be available to many small business owners who took out loans through the program, but it’s important to act quickly.

Paycheck Protection Program Forgiveness

The PPP was included as part of the CARES Act to help prevent mass layoffs due to the pandemic. Small business owners could apply for the loans on the basis that the money would help them keep people employed. Applications for new loans through the Paycheck Protection Program closed in August, and, as of this writing, it is unclear whether future loans will be made available through future federal legislation.

Designed as a short-term relief measure, many people hoped that the pandemic would be over in a matter of months and business would return to pre-pandemic levels. With case loads climbing during the fall months, and vaccination just beginning, small business owners are realizing that they will need more help to keep people on the payroll into 2021.

While you can’t apply for additional funds through PPP, the Small Business Administration (SBA) is offering a chance to apply for loan forgiveness. Small business owners would be advised to apply quickly, however. Rules governing the dispersal of funds have changed throughout the year and are unlikely to do so before the new year begins. It is also possible that the SBA will stop accepting forgiveness applications after a certain point, so it is wise to apply early.

Who is Eligible?

If you received a PPP loan under the CARES act in 2020, you may be eligible for PPP forgiveness. There are certain criteria required for loan forgiveness, and you will need to file an application with your lender. It’s a good idea to have your documentation ready before you start the application – much like doing your taxes, missing documents can delay the process by months.

According to the SBA, you may be eligible if:

  • You have used all the funds for which you are asking forgiveness
  • The funds were used on payroll, OR mortgage interest payments for your business OR rent and utilities
  • The funds were used during the eligibility period after disbursement (either 8 or 24 weeks, depending on your loan)

If you’re uncertain if your business expenses check these boxes, it’s important to communicate with your lender. They will supply you with the necessary forms and can guide you through the process.

Other Emergency Relief for Small Businesses

The SBA does far more than just administer PPP loans. For eligible businesses, loans of up to $500,000 are available under the Disaster Relief loans program and the loan advance program for small businesses.

Additionally, there are a wide variety of state and local programs designed to support small businesses. You can view a list of available programs here. Private lenders are also still funding small businesses to help cover operating costs

Final Thoughts

The paperwork necessary to obtain PPP loan forgiveness can take time and requires close communication with your individual lender. Expect delays as many small business owners seek loan forgiveness simultaneously. Keep in mind that while the principal on the loan can be completely forgiven, you will need to repay any accrued interest, so it is in your best interest to obtain loan forgiveness as quickly as possible.

Sources

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program#section-header-5

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

https://home.treasury.gov/policy-issues/cares

https://www.barlowresearch.com/mybarlow/viewarticle.php?item=13587&id=6612480

https://www.reliantfunding.com/covid19

Updated 12/21/2020

(Visited 1 times, 1 visits today)
By clicking "Submit", you (a) consent to receiving calls and messages, including autodialed or pre-recorded calls, from Reliant Funding using the information you provided above, including via wireless telephone numbers that could result in charges to you, (b) acknowledge that no purchase of goods or services is contingent upon such consent, (c) acknowledge that telephone calls to and from Reliant Funding may be recorded, (d) consent to receive email correspondence including advertisements for business funding and other products or services, and (e) acknowledge that you have read Reliant Funding’s Privacy Policy and understand that you may opt-out of receiving communications of your choice from Reliant Funding as provided in the Privacy Policy.

Quickly learn your
funding options.

No cost to apply. No obligation to accept.

Congratulations!

Your Reliant Funding application has been received.

You will be receiving a call shortly and we look forward to learning more about your business and funding needs.

By clicking the "Submit" button I agree to all terms and conditions.
GET QUOTE NOW
Trustpilot
We respect your privacy and will never sell or share your personal information.

Before you leave...

Please tell us about yourself.

Congratulations!

Your Reliant Funding application has been received.

You will be receiving a call shortly and we look forward to learning more about your business and funding needs.

'Fast. Simple. Flexible. Request A Quote Today!'

'Congratulations, Your Application is Now 50% Complete!'

'Let us know who to contact once the funding details are available and we’ll be in touch immediately.'

APPLY NOW
GET STARTED TODAY!
Trustpilot
[cms-block title="CTA Popup - disclaimer (english)"]
previous | refresh
1