By Chuck White, Vice President of Regulatory Affairs
The Small Business Administration (SBA) recently has issued guidance and related information for the Payroll Protection Program (PPP) and the Main Street Lending Programs. For PPP borrowers with loans of $2 million or greater, lenders will be sending a mandatory survey that must be completed within 10 days of receipt. Smaller PPP borrowers, with loans of $50,000 or less, may be eligible to use simplified Form 3508S to apply for forgiveness as well.
There is no hurry to file for forgiveness as long as the request is filed within 10 months of loan disbursements. In fact, some advisors suggest waiting to file for forgiveness to allow for legislative actions to be enacted, actions which could further clarify the tax-exempt status of the expenses paid with loan proceeds.
The Main Street Lending Program, which created low interest loans to help with the COVID crisis, has been expanded as explained by the Federal Reserve Board FAQs. The original minimum loan amount of $250,000 in the program has been lowered to $100,000 as a means to increase financial assistance to small businesses. As always, consult with your professional financial advisors and lending institutions for information regarding the applicability of these programs to your business.
Vice President of Regulatory Affairs , PHCC-National Association