Moving Forward with PPP Loan Forgiveness
The Paycheck Protection Program was instituted in early 2020, offering an opportunity for small businesses to receive financial relief after the initial economic injury of the Coronavirus pandemic. The SBA has started accepting loan forgiveness applications, which is great news for businesses looking to move forward. This year has been full of surprises and disappointments, but we don't want to PPP loan forgiveness process to be another one of those moments. Here is what business owners should know about PPP loan forgiveness.
What to Know About PPP Loan Forgiveness
1. Loan Forgiveness Has Started
The SBA has confirmed that the association has started accepting forgiveness applications. The window has opened Friday, Oct. 2, and an SBA spokesperson has stated that all applications will be reviewed "in an expeditious manner."
2. You Must Meet Criteria
To be eligible for full loan forgiveness, businesses must meet certain requirements. Some criteria include maintaining wages and retaining full-time staff. Additionally, at least 60% of the loan should have been used on employee wages, while the remainder of the loan could have been used to pay for mortgage, rent, and utilities. If loan expenditures do not meet these requirements, businesses can expect forgiveness reduction. More information can be found on the SBA website.
3. If You Don't Meet Forgiveness Criteria, Interest Rates are Low
If your business does not meet the criteria to receive loan forgiveness, there is a silver lining. The interest rate for an SBA PPP loan is 1%, which of course is very low.
Loan Solutions are Available
Since 1993, First Liberty has been Atlanta's trusted small business lenders. We are passionate about our local economy and work with dedication to provide the best solutions for small businesses.
The experienced specialists of First Liberty are here for you. Have questions? Contact us today at 770-253-4300 or by filling out the contact form on our website.