Pub. 1 2020 Issue 6

www.cbak.com 14 In Touch T he Small Business Administration (SBA) is now processing some Paycheck Protection Program (PPP) loan forgiveness decisions and related payments. During a call with SBA 7(a) lenders, SBA Deputy Associate Administrator Bill Briggs told attendees that PPP lenders would be getting a letter regarding the remittance of payment for PPP forgiveness applications that have been submitted. “SBA has begun the process of remitting payments, and we expect that to increase,” he said. A Treasury Department representative told several news outlets last week that the government expected to sign off on and begin paying some forgiveness requests by early this week. This week marks eight weeks after the SBA’s PPP Forgiveness Platform opened on Aug. 10 to begin receiving applications processed by lenders. Under the PPP forgiveness timeline outlined in the CARES Act, the SBA has 90 days to review forgiveness application submissions and remit payment to the lenders for the forgiven portion. In the meantime, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have unsuccessfully, tried to work out a deal that will garner support from the Republican-led Senate. Mnuchin has said he supports some streamlined forgiveness processes for $150,000 or less for PPP loans. “As it relates to the forgiveness part of this, I appreciate for many small businesses, the forgiveness process is a little bit complicated,” Mnuchin said during an interview with Rep. Tom Reed (R-NY) that was posted on YouTube. “As part of additional legislation, we do support the bipartisan fix to simplify the process for loans that are $150,000 or less but still gives the SBA the necessary ability to audit. Unfortunately, without legislation, there’s only so much we can do.” Mnuchin said the SBA and Treasury are also working toward “an administrative solution” to make it easier for borrowers of $50,000 or less to apply for forgiveness. “We’re trying to work on a solution for loans that are $50,000 and less administratively that at least makes it slightly easier and BY MARY ELLEN BIERY, ABRIGO SBA Now Processing PPP Forgiveness Decisions, Remitting Payments A s s o c i a t e M e m b e r