Government to forgive 69% of PPP loans: Small Business Administration expanded eligibility

Posted at 6:07 AM, Oct 16, 2020
and last updated 2020-10-16 06:07:26-04

LANSING, Mich. — Millions of small business owners who received PPP loans have been waiting for answers on how and when their loans would be forgiven. Alicia Nieves has some answers that will affect whether your favorite shops and restaurants will be able to stay open.

The small business administration, has just announced it plans to forgive almost 70% (69.2%) of the loans it gave to small businesses. “the new guidance that has come out from Treasury Department and the SBA aim to ease the process for applying for forgiveness of loans under $50,000.”

Molly Day is with the National Small Business Association and explains the new guidance forgives loans that were $50,000 or less but also comes with a new rule: businesses with no employees can now have their loans forgiven.

Initially, most of the forgivable portion of a PPP loan was that which was used toward paying employees.

“A lot of small businesses don’t have employees, or they have one employee and that is themselves. Adjusting that really makes it a lot more workable for the sole proprietors that are small businesses, are doing great work and deserve some assistance as well.

”The forgiveness process laid out by the Small Business Administration does not have the usual red tape that comes with most government forgiveness processes. the business owner just fills out a one-page document and sends it to the lender.“ "I do think making the forgiveness process easier and more streamlined, could help many small businesses. "

Many businesses been worrying about surviving and being able to stay open even though they got a loan months ago. But several tell me this new forgiveness process will making staying open much easier, giving some, like your favorite coffee shop, restaurant, or small retailer a renewed hope for their future.

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