Small business owners seeking forgiveness for Payroll Protection Program loans should apply through their lending institution, not the U.S. Small Business Administration.
That’s one of several tips the SBA Connecticut District is providing to small businesses that received PPP loans.
The SBA advises borrowers to download a PPP loan forgiveness application, then submit it with required information to the lender that provided the loan.
A lending institution has up to 60 days to review a forgiveness application and the SBA has up to 90 days to review the application once it’s received from the lender.
The SBA remits the amount forgiven to the lender, who must process the forgiveness payment before notifying the PPP borrower of the amount.
Connecticut small businesses that borrowed $50,000 or less are eligible for a simplified PPP loan forgiveness application that can be completed in as little as 15 minutes.
The SBA and the Treasury released the simpler PPP forgiveness application last month and streamlined the forgiveness process for a majority of borrowers.
Since a key part of forgiveness for PPP loans is using the money for eligible expenses, borrowers need to provide documentation, including verification of payroll and non-payroll expenses, with the forgiveness application as required by the CARES Act.
The SBA began approving PPP loan forgiveness applications and remitting forgiveness payments to lenders for PPP borrowers on Oct. 2.
SBA’s Resource Partner Network—which includes the Connecticut Small Business Development Center, SCORE Mentors, Women’s Business Centers, and the Veterans Business Outreach Center—also provides one-on-one business advising and technical assistance to small businesses at no- or low-cost.
In the New England Region, 266,371 forgivable PPP loans valued at more than $28.9 billion were approved.
In Connecticut 64,605 forgivable PPP loans valued at approximately $6.7 billion were approved.