Loan Forgiveness

[soapy]

I was talking to my banker about the forms needed for the PPP loan forgiveness program. His bank is only processing loans over 150K at this time for forgiveness. He said Congress is working on a total forgiveness program for any loans under 150K on the PPP program. I guess the government can't be bothered on small loans to actually audit anything under 150K.

 

[cooll903]

yea, i asked for like 10k and my bank said on not so few words to go fly a kite so now im in the process of getting another bank.

 

[Earl Weiss]

One of the smaller banks had me fill out forgiveness forms on line and after I submitted them the repaly was to expect a response in 60-90 days. The larger bank gave the same answer as the OP got.

 

[soapy]

Your bank has 60 days to review your documents and then the IRS has 60 days to review them. Total forgiveness for under 150K seems like fraud by a lot of companies.

 

[Earl Weiss]

Your bank has 60 days to review your documents and then the IRS has 60 days to review them.

I don't think the IRS is involved in determining the PPP Loan forgiveness although they may determine how it affects your tax liability.

 

[soapy]

Earl you are right it is the SBA that has 60 days to review documents.

 

[Waxman]

So if they do not review your documents your loan is forgiven anyway?

 

[soapy]

If the bill passes the congress they would never review the documents.

 

[Kramerwv]

If passed, any ppp loan $150k or less would include a one page forgiveness application where the borrower attests to spending the funds correctly. No calculations and no “proof” to submit.

 

[tdlconceptsllc]

I got a (Covid 19 disaster relief SBA Loan) and it does talk about the forgiveness in it, but very brief.