Port Huron, MI — As the time for businesses to use SBA payroll protection funds begins to expire, financial institutions are preparing to process millions of applications for loan forgiveness. Companies that received funds in early April can start to submit forgiveness applications at the end of May.
Lenders will be called on to help prepare detailed application documents and turn them over to the Small Business Administration for approval. Banks made about 4.3 million Paycheck Protection Program or PPP loans for a total of more than $500 billion. The program allows every borrower to request forgiveness.
The SBA released an 11-page document last week listing the criteria small businesses must follow to get their PPP loans forgiven. Among the guidelines are directions on how to calculate payroll costs, which must account for 75% of loan proceeds spent. The document is complex, so it will fall to lenders to help borrowers complete it.
Over the two rounds of the PPP, which began in April, Michigan companies received 103,811 total PPP loans totaling $15.9 billion in funding.
Reporting for WGRT – Marty Doorn