PPP Loan Forgiveness is here!
While many businesses who received the loans will be eligible for 100% loan forgiveness, you must apply for loan forgiveness. If you need help navigating the process, you should check in with your lending institution and/or sign up for a free financial or legal consultation that the BID secured through our partners at Start Small Think Big.
Many local businesses received funds through the PPP (Paycheck Protection Program), a loan that was part of the CARES Act that provided up to 2.5 times your average monthly payroll costs in order to keep employees on the payroll.
These loans will be forgiven if they have been used for eligible expenses. There is a possibility for up to 100% loan forgiveness if the funds are used for payroll costs, interest on mortgages, rent, and utilities. (A particular portion must be used for payroll. That amount varies based on when the loan was made). In order for full forgiveness, the employer must maintain or rehire employees to retain employment level. The amount of the loan that is forgiven will be reduced proportionately by the reduction of number of employees and of wages.
Read the full explanation and FAQ from the SBA Here
To receive loan forgiveness you must fill out an application. To make the process easier, SBA recently released a simpler loan forgiveness application for PPP loans of $50,000 or less.
Each financial institution acting as a lender has their own PPP forgiveness processes, so make sure to check in with your specific financial institution.
Click Here for SBA PPP Loan Forgiveness Application in Spanish