PPP Loan Borrowers May Consider Applying for Forgiveness as Soon as Monday, June 8

June 2020

Three weeks ago, the U.S. Small Business Administration (SBA) and the U.S. Department of Treasury released the Paycheck Protection Program (PPP) loan forgiveness application along with detailed instructions and guidance.

The eleven-page PPP loan forgiveness application provides a step-by-step guideline of how to complete the loan forgiveness application, and each PPP loan borrower will need to submit the application to its lender (more information on the process and the application can be found here).

Borrowers have 8 weeks to spend the PPP funds and this 8-week forgiveness period may end as soon as Monday for borrowers who received a PPP loan in the first round of funding (the week of April 10). There is potential that this 8-week period may be extended as the Senate unanimously passed by voice vote the Paycheck Protection Plan Flexibility Act Wednesday night and is now headed to the President’s desk for signing. One of the key provisions of this new bill is that PPP borrowers can choose to extend the 8-week period to 24 weeks, or they can keep the original 8-week period. This flexibility is designed to make it easier for more borrowers to reach full, or almost full, forgiveness. FMJ will continue to monitor this situation.

Regardless of the new bill, borrowers and lenders are gearing up to start the application process and FMJ has formulated an audit team to help your bank and your business.

*INTRODUCING FMJ’S PPP LOAN APPLICATION AND AUDIT TEAM*

Our PPP Loan Application and Audit Team can assist businesses, banks, and financial institutions with the loan forgiveness process. Led by Jim Seifert, former GC of a Fortune 500 company, the team consists of five other members who can consult and advise on various elements of the forgiveness process.

HOW OUR TEAM CAN HELP YOUR BUSINESS:

  • PPP Loan Forgiveness Application Consulting and Advising for Borrowers – we can provide legal advice and strategy to assist your business in completing the PPP Loan Forgiveness Application.
  • PPP Loan Forgiveness Application Review for Borrowers – we can assist in the completion of your business’ PPP Loan Forgiveness Application documents and provide a full-length review of the application.
  • PPP Loan Audit Consulting and Advising for Borrowers – we can provide legal advice and strategy to assist your business in preparing for SBA’s audit of PPP loans in excess of $2 million. 
  • PPP Loan Audit Preparation for Borrowers – we can assist in preparing and reviewing documents that help establish your business’ required eligibility and good faith certifications made when you applied for the PPP Loan in anticipation of SBA’s audit of PPP loans in excess of $2 million. 

HOW OUR TEAM CAN HELP YOUR BANK/FINANCIAL INSTITUTION:

  • PPP Loan Forgiveness Administration and Review for Financial Institutions – we can provide general advice and strategy to banks and financial institutions to establish a process and procedure for reviewing the PPP Loan Forgiveness Application in compliance with SBA.
  • PPP Loan Forgiveness Customer Assistance for Financial Institutions – is your customer asking a question that may constitute legal advice? Your bank or financial institution can refer this customer to FMJ for legal advice on the PPP Loan Forgiveness Application. 

If you’re interested in learning more or engaging the PPP Loan Application and Audit Team, please contact Jim Seifert at james.seifert@fmjlaw.com, Bob Fafinski at robert.fafinski@fmjlaw.comNate Brandenburg at nathan.brandenburg@fmjlaw.com, or Jordanne Kissner at jordanne.kissner@fmjlaw.com.