Businesses that received a Paycheck Protection Program loan now have more information available on how they can go about seeking forgiveness of that loan.
The businesses may receive forgiveness for all or part of their loans if they used the money as prescribed by the rules of the program, which was one of the main components of the federal stimulus package known as the CARES Act.
The Small Business Administration recently released a 10-page Frequently Asked Questions document online to help business owners navigate the process at sba.gov/document/support-frequently-asked-questions-ppp-loan-forgiveness.
According to the document, if a borrower submits a forgiveness application within 10 months of the period their loan covered, they will not be required to make any payments on the loan until the SBA sends the lender the money for the portion of the loan that has been forgiven. If the loan is completely forgiven, the borrower won’t have to ever pay anything. If the loan is only partially forgiven or the application for forgiveness is denied, the borrower will have to repay the loan before the date of maturity outlined in their agreement.
The SBA launched its portal for loan forgiveness on Monday, Aug. 10, but many banks are awaiting additional guidance and taking time to prepare before processing application.
Hermiston-area businesses can seek help from their lender, the Blue Mountain Community College Small Business Development Center (541-278-5833) or the Umatilla Electric Cooperative’s Business Resource Center in Hermiston (541-289-3000).