Applying for Loan Forgiveness May Not Be as Simple as Business Owners Think

October 7, 2020

If you’re a business owner with a Small Business Administration (SBA) Paycheck Protection Program (PPP) loan, it may be time for you to apply for loan forgiveness from your lender if you haven’t already.

Applying for loan forgiveness may not be as simple as most small business owners thought, and that’s because SBA and the Treasury Department continue to release additional guidelines around the forgiveness of the loans. Some of the newer provisions could work for or against you, depending on how you used the funds and your type of business.

As a general rule, the PPP loans are forgivable if the business owner has used 60 percent of the loan for eligible payroll costs over 24 weeks. The newer rules affect the eligibility requirements for the following:

  • Business Rent
  • Utilities
  • Mortgage Interest
  • Other non-payroll costs

With the newer rules and potential future guidelines, some small business owners may not be eligible for as much forgiveness as they had thought. Help for business owners

Business owners in need of assistance in evaluating their loan forgiveness eligibility should contact the business attorneys at O’Reilly Rancilio at 586-726-1000 or www.orlaw.com.

Categories: Business