Act Now on PPP Loan Forgiveness


While the initial concern for business owners was getting funding from the PPP so they could continue to pay their employees, now the focus is on forgiveness of the loans. The next challenge for business owners is getting their PPP loans forgiven. The rules on forgiveness have changed so often, it’s hard for business owners to keep up.  Congress has extended the period in which the funds can be spent, and how much has to be spent on payroll, but the changes come with their own “gotchas.” For instance, a business can decide to take advantage of the twenty four week covered period instead of the original eight week period, but if they do, the measurement of the number of employees necessary to meet the rules on forgiveness will move from June 30, 2020 to December 31, 2020. If a business has less than the number of employees on that date than in the base period, they will lose some of the forgiveness of the PPP loan.

What hasn’t changed is that businesses will have to provide evidence to their lenders that they meet the requirements of the SBA and their lender for the loan to be forgiven. Even though the SBA announced changes on June 17 to the original 11-page forgiveness application, business owners still have to provide evidence that they meet the requirements for eligibility.

The general process to obtain loan forgiveness requires a borrower to complete and submit the loan forgiveness application to its lender up to 10 months after the loan is funded. Importantly, the lender has 60 days from the receipt of a complete application to issue its forgiveness decision to the SBA. Upon submission, the SBA will remit the appropriate forgiveness amount to the lender, plus any accrued interest through the date of payment, not later than 90 days after the lender issues its decision. The SBA reserves the right to review any application for eligibility under the PPP or compliance with the required certifications. Consequently, getting the loan forgiveness application and documents correct and complete becomes extremely important for businesses.

Since the pandemic started, Lorgus and B2B CFO Partners around the country started offering local businesses access to free cash flow advice sessions.

In these 30-minute remote, one-on-one phone call sessions, business owners will learn what immediate action they can take to qualify for loan forgiveness, advice on how to apply for and complete the application, and valuable insights on how they can restart their business.

“Business has become much more challenging since the pandemic hit the U.S, and even more so for smaller businesses,” stated Lorgus, a partner at B2B CFO®. “On top of the challenge of trying to restart or adapt their business to the post-shutdown economy, they have to deal with the issues around PPP loan forgiveness. Many business owners don’t know where to turn for answers. My goal is to help business owners figure out how to do the forgiveness application right. It’s so important to get that right, because as businesses begin to apply for forgiveness, banks are going to have so much work to do.”

Bankers agree. “The recent changes from the PPP Flexibility Act, should provide businesses with a greater opportunity to have the loans fully forgiven,” said Christie Boutain, Vice President Commercial Loan Officer at Meadows Bank. “However, businesses will still have challenges in knowing how to complete the forgiveness application.”

B2B CFO with nearly 200 partners nationwide, has a history of giving back to the community and this is not the first time that the company has stepped up to help stricken business owners. In the past, B2B CFO has rolled out assistance to business owners impacted by natural disasters such as the California fires in the west, devastating tornadoes in the southeast and post-hurricane recovery in the east.

Lorgus added some positive news from the front lines, “To date, all of my clients have received funding as part of the economic impact relief effort passed by the federal government. I have been through the process and can help businesses understand the details of the application and can help them get as much loan forgiveness as possible.”

Congress authorized the Paycheck Protection Program (PPP) as part of the CARES act to try to save jobs during the pandemic. From that moment, the program has been marked by continual changes, shifts in guidance from the SBA and IRS, and confusing instructions.  Thankfully, business owners in the Phoenix metro area have a trusted resource to turn to. Wayne Lorgus, a partner at B2B CFO®, a national firm dedicated to providing management advisory services to privately held companies, is stepping up to offer much needed guidance for small and medium-sized businesses.

B2B CFO provides management advisory services to owners of privately held companies, with a focus on increasing cash and company value. The firm’s services include improvements in finance, accounting and operations, and company growth, as well as helping owners to transfer or sell their companies. B2B CFO’s nearly 200 professionals work directly with business owners, on site and remotely. Each is also an equity owner in B2B CFO and has more than 25 years of senior-level experience. With a nationwide presence, B2B CFO is the largest company of its kind in the United States. Founded in 1987 and headquartered in Mesa, Arizona, B2B CFO has ranked in the Inc. 5000 and was recognized in 2018 as one of Forbes Magazine’s “Small Giants.” For more information please visit .

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