I am seeing a lot of dental practices ignoring or perhaps forgetting that they need to apply for their PPP Forgiveness by the end of the year. I know, out of sight, out of mind. However, it is time to get in gear before the end of the year to avoid having to make payments in the beginning of 2021.
Many large banks have been “slow-walking” their Forgiveness process due to the many last minute changes that continue to creep up from the Small Business Administration. Smaller banks or credit unions have been a bit better about their client outreach. I understand why the big banks are slow to be proactive on moving their clients forward as I survived the PPP hell earlier this year in my prior career as a banker. The banks had little time to prepare and even when they thought they had everything in order the government would change the rules. It was a nightmare for all. Now we are in the Forgiveness phase and things are still changing.
Unfortunately, a delay on your part could mean you will begin making payments early in 2021 even though you expect the full loan amount to be forgiven. Begin the process immediately by contacting your bank and banker. Each bank will have it’s own process and some will have their own application. Others will have you complete the SBA application for Forgiveness. Save time and headache by contacting your bank now. They will guide you through their process, their application and the SBA’s documentation requirements.
The banks has sixty (60) days to certify your loan application is complete with all documentation and you qualify for some or all loan proceeds forgiven. The clock starts ticking only after the bank has received all the documentary proof of what you spent the funds for. Ie., payroll, mortgage, utilities, etc. After that the SBA can take up to ninety (90) days to approve you and send the money to the bank to payoff or pay-down your PPP loan.
To complicate matters when you received your PPP funds will make a difference in your documentation. As I started earlier, the rules kept changing. Do not try to do this on your own. You must contact the bank that gave you the funds to apply for Forgiveness. Good Luck and remember to be patient with your bank and banker. After all it is the government they are working with and they must be extra careful when submitting your application for Forgiveness to ensure you have the best chance possible of getting all your loan forgiven.
Below you will find the link to the SBA’s PPP Forgiveness page as a resource.
If you’re looking to have a more in-depth conversation on this topic, please don’t hesitate to reach out to us.