Knowledge and Insights
Mercadien is ready to assist you in facilitating the CARES Act Paycheck Protection Program (PPP) loan forgiveness processing. The SBA stated that Lenders are expected to perform a good-faith review, in a reasonable time, of the borrower’s calculations and supporting documents concerning amounts eligible for loan forgiveness. If the lender identifies errors in the borrower’s calculation or material lack of substantiation in the borrower’s supporting documents, the lender should work with the borrower to remedy the issue.
The recent bill that has passed both the house and senate, among other things, extends the forgiveness period for all PPP loans to 24 weeks from the date of origination. This is great news as the forgiveness applications will flow into your institution over a longer time horizon and hopefully leave very little loan amounts unforgiven.
Mercadien and our staff can assist in the building of the protocols to maintain compliance with the SBA rules and to stay within the 60 day timeframe to process such requests. We can manage the whole review process or act as overflow to your internal staff.
Please let us know if your institution needs assistance in processing the forgiveness requests so that we may strategize with you on keeping the forgiveness pipeline moving over the coming weeks.
DISCLAIMER: This advisory resource is for general information purposes only. It does not constitute business or tax advice, and may not be used and relied upon as a substitute for business or tax advice regarding a specific issue or problem. Advice should be obtained from a qualified accountant, tax practitioner or attorney licensed to practice in the jurisdiction where that advice is sought.