Lori N. McCausland
Have your PPP Borrowers been forgiven?
If you have Borrowers in your PPP loan portfolio who haven't yet applied for forgiveness, their time is running out. Forgiveness deadlines are expiring soon - or have already expired.
Here are five things you'll want to do, double-check, and pay attention to.
Have you registered for direct forgiveness?
Did you provide resources for Borrowers to navigate the forgiveness process, especially for any who aren't sure if they qualify for full forgiveness? For instance:
- Links to SBA-sponsored guidance, such as the PDF available on this page:
- Direct contact information to staff at your office who understand the process and
are prepared to help.
- Links to SBA's direct-forgiveness portal (if you've registered for direct
Have you documented all your attempts to contact Borrowers about the loan-forgiveness process? (You really don't want to be in a position of "yes we did / no you didn't" with a Borrower who believes they weren't informed.)
How are you handling Borrowers who aren't responding? For instance:
- Use multiple communication channels - phone, email, text, in person, and so on.
- Conduct a site visit to ensure the business is open and operational.
Have you prepared written in-house procedures for transitioning non-forgiven loans from the grace period to term out and repayment?
- For loans with two-year maturities (approved between March and June 2020),
are you offering the option to extend maturity to five years?
- What about unforgiven loans that have now been amortized, but payments aren't being made?
PPP loans were a tremendous benefit to so many businesses during the height of the pandemic. They were also a scramble to administer, coming with a host of different - and sometimes rapidly changing - requirements and procedures. Now that the forgiveness period is coming to a close, and un-forgiven loans are nearing maturity, it's time to make sure that all the proper procedures have been, and will continue to be followed, and that you're supporting your Borrowers in the best possible way.
If you have questions or need some help getting your PPP loan process sorted - that's what we're here for. As consultants to SBA 7(a) Lenders, we offer support, advice and direct assistance to you and your staff. Request a free consultation and see how we can help you!