If you’ve already spent your PPP funds, then you’re ready for the next stage: applying for forgiveness.
While there’s no rush to apply for loan forgiveness, these five reasons may help you resolve that now is the right time for you.
Here are the 5 Reasons to Apply Now for PPP Forgiveness
- So easy to apply.
Our PPP loan forgiveness portal provides clear guidance on each step of the application, taking the guesswork out of the process. View our step by step guide here.
Earlier this year, the SBA streamlined the forgiveness application for borrowers with loans of $150,000 or less, easing the process for the majority of borrowers. First Draw borrowers applying for loan forgiveness don’t have to provide any additional information beyond completing the simple online application. Second Draw borrowers with loans of $150,000 or less just need to provide documentation that revenue declined by at least 25% between 2019 and 2020 along with the forgiveness application.
- No new changes in sight.
With PPP loan demand dwindling and the program coming to a close, we do not anticipate any new changes to the loan forgiveness process.
- Apply before your first PPP loan payment.
We recommend applying for forgiveness before your payment deferral period ends. Here’s why: at the end of the 10 month deferral period, you have to start making monthly payments with loan terms of 1% interest on a two- to five-year term.
- Positive impact on debt-to-income ratio.
Applying for loan forgiveness and removing the debt will be recognized as a gain on your financial health record. Managing this now is especially important if you are considering securing loans at favorable rates in the future.
- Peace of mind.
We have a dedicated PPP team that processes completed forgiveness applications as soon as they’re received. Once submitted, the average response from the SBA is within 12 business days. Best of all, nearly 96% of our customers who have applied for forgiveness received approval that their loan is fully forgiven.
Ready to apply for forgiveness?
For loan forgiveness application reminders, visit our PPP forgiveness page.
If you have questions about PPP Forgiveness, contact us at [email protected] or 808-544-6865.