The forgiveness process for the Paycheck Protection Program is requiring additional communication between banks and businesses, the Consumer Bankers Association reports.Trade groups are pushing to have loans under $150,000 automatically forgiven.
According to the Consumer Bankers Association, banks estimate that as many as 80% of forgiveness applications that have been submitted by small businesses are requiring additional follow-ups to reconcile errors or find missing information. The EZ form, which allows businesses that meet certain qualifications to apply via a simplified process, is not as easy as advertised, CEO Richard Hunt says.
A recent report from the Government Accountability Office found questions remain about the forgiveness process, pointing out that the Small Business Administration issued rules and guidance on a "rolling basis." The report added that "applying for loan forgiveness is more time consuming than applying for the PPP loan itself.
And some are finding that even though they want to apply for forgiveness, they are not immediately able to. Paul Hoodless,in San Antonio, Texas, said he is eager to see if loans are forgiven below the $150,000 threshold, adding that his bank wasn't ready to accept his forgiveness application late last month.
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Source: TheEconomist - 🏆 6. / 92 Read more »