PPP Loan Forgiveness Changes with New Act - SBA PPP Loan

PPP Loan Forgiveness Changes with New Act

The new 2021 Coronavirus stimulus legislation not only allows for $285 billion in additional Paycheck Protection Program (PPP) funds to be disbursed through approved lenders like Liberty SBF, but also updates loan forgiveness rules as well.

In 2020, Liberty SBF facilitated over 3,200 loans in the sum of more than $350 million in the first round of PPP lending. Since then, the company has invested in its PPP technology and built a secure, customized portal to process loan forgiveness for those customers. 

PPP Loan Forgiveness Details

Liberty SBF anticipated changes to the loan forgiveness process, and as expected, the new stimulus legislation shifted the PPP loan forgiveness process in the borrower’s favor.

The Small Business Administration (SBA) is still working to finalize the rules and approved forms for the updated Paycheck Protection Program Loan Forgiveness process. After review of the new legislation, we have outlined the details provided thus far:

  • Borrowers with loans under $150,000 will have a significantly simplified forgiveness process that only requires completion of a one-page attestation confirming they have conformed to the requirements of the program that includes:
    • Number of employees the borrower was able to retain because of the PPP loan, an estimated amount spent on eligible payroll costs, and total PPP loan value; and,
    • Borrower accurately provided the required certification and complied with applicable PPP requirements.
  • This form is expected to be available by January 20, 2021
  • Small business owners who received both a PPP loan and an EIDL advance will not have to subtract the EIDL advance from their PPP forgiveness
  • First and second draw PPP Loans will not be taxable to borrowers

An important provision came about in the new law, “if a borrower already received a forgiveness determination from the SBA, the borrower cannot refile for loan forgiveness to take advantage of the new rules.”

We encouraged our PPP loan borrowers to hold off on filing for this reason!

Paycheck Protection Program Application Through Liberty SBF

Liberty SBF has invested heavily to build a web portal to process Paycheck Protection Program Loan Forgiveness quickly and efficiently for its borrowers. You can learn more in our Paycheck Protection Program (PPP) Loan Forgiveness Guide.

Funds for the second draw PPP Loan are on a first come, first serve basis. Liberty Small Business Financial strongly encourages borrowers to pre-register for the new PPP loan in 2021 by clicking here.