PPP Loan Forgiveness Just Got Easier - YouTube

Hello. Ryan here. How are you doing today?  I'm a CPA and today I'm going to be talking  

about the PPP loan forgiveness and how it's more  simplified now since the SBA implemented some  

new stuff as of the end of last month. I know  it's, it's not like breaking news or anything  

but I thought it might be important to cover  anyway. But first of course, I'd appreciate it  

if you would consider subscribing to my channel  and also smashing that like button to you know,  

to give my video a like, and to make sure you  share it with everybody that you know that might,  

that you think might find it helpful. And  also if you have questions below, please  

leave it in the comments. All right so before  I go over everything let's do a quick recap of  

the PPP loan timeline. And just give you an idea  like the timing of all this, and like you know,  

where you should be maybe. So you know, obviously  you start with the loan disbursement date.  

That's the day that you received your loan, and  then next comes the covered period which is the  

period where you need to be using your money.  Within that period you've got to be using all your  

funds within that period in order to qualify for  forgiveness. The covered period is usually either  

8 weeks or 24 weeks. Most people probably will  be choosing 24 weeks to make sure they qualify  

for the whole thing with no issues. Then there  comes the deferment period. That's the period  

from when you don't have to make any payments  back to the PPP loan. That comes 10 months after  

the covered period ends okay. So you have loan  disbursement date, covered period right here,  

and then deferment period like 10 months here. And  some people might think that that's the time that  

you have to apply for forgiveness. That's actually  just the time that your loan is deferred and you  

don't have to make any payments. You can actually  apply for forgiveness at any point before the loan  

matures okay. So now that we got that covered,  let's go through like the original process of  

applying for forgiveness. So usually you would  apply for forgiveness through your bank, the  

same bank that you got your loan funded from, and  you've got to go through their portal and their  

process, and each bank has slightly different  document requirements and processes and stuff.  

Some banks don't even have their forgiveness  portal open yet, which is shocking to me but  

that's just the truth. So yeah, basically you,  you apply for forgiveness through your bank. Your  

bank makes a decision, then your bank submits the  application to the SBA. The SBA makes the decision  

and then you know, they pay the bank back for  your loan if you get approved. Well now the SBA is  

wanting to simplify the process by doing like a  direct forgiveness straight to the SBA's website.  

You know, skipping any bank processes and  stuff and this is primarily for loans under  

$150,000 okay. They want to kind of streamline the  process even more. So with loans under $150,000,  

they're requiring little to no documentation for  forgiveness. You can, you can apply straight from  

the SBA's website as long as the bank that you're,  that you're using is opted into this process.  

So let's say you're using like First Bank. First  Bank has to be opted into the direct forgiveness  

process for you to use the SBA's website to do  that. If your bank's not opted in yet then you  

can't do it this way. And the SBA does have a list  on their website to show you, to tell you like  

what banks are participating in this program. So  once you submit your application through the SBA,  

your bank still has to approve it but it's just  taking some load off of the bank's front end.  

So why is the SBA doing this? Well first,  they really want to wrap up this PPP program  

you know, it's been, it's been out for a  while. It's, we've got a second draw going.  

We are approaching you know, the time where you  should be applying for forgiveness for the second  

draw even. So, the SBA just really wants to wrap  this up and 90% of the loans are under $150,000  

so this will give a lot of people a more  simplified way of applying for forgiveness  

and hopefully getting it approved. It's also going  to take the load off of banks on the front end,  

you know of the front end of like applying for  forgiveness through the banks portal. Which  

sometimes there's errors, sometimes the bank's  portal is not ready yet, all those things. They  

just, the SBA just wants to get past that part  and uh and make it easier. The third reason is  

the SBA has made this a really streamlined  process. They're estimating that it might take  

five to six minutes for each applicant to complete  the PPP forgiveness application through this  

direct forgiveness portal which is incredible. And  lastly of course, like I mentioned before, some  

banks don't even have their forgiveness portal  available yet. And you know I'm, you know for  

many people I'm sure the 10-month deferment period  is already up. Like they should be paying for this  

loan, started paying back but the, the banks are  not ready yet. So that's also another frustrating  

thing and so hopefully they've opted in to this  direct forgiveness program to let people apply  

even when the banks are not ready yet. All right  so how can you do this? How can you apply for  

this forgiveness program? You've got to go to  the sba.gov website, you know you're going to  

click on like funding options, Covid relief, and  then there's a section that says PPP forgiveness.  

And I'll of course put a link in the description  below just so you can find it more easily.  

And from that point, you can learn a little bit  more about you know PPP forgiveness for draw one  

and draw two. You can learn about you know,  which banks are participating in the program  

um I think that that list is a little buggy  or iffy because I tried this with one of my  

clients and it says his bank is participating but  then we go to look him up and the SBA's website  

says that he's ineligible because the bank is  not participating even though it's in the list.  

So just take that with a grain of salt I guess.  And you know, government operations at its finest.  

So once you get, once you make sure you know your  loan is under $150,000 and your bank has opted  

into the program, you need to create a forgiveness  login. Basically create a user and you're going to  

enter your EIN after that, and your PPP loan  amount, and the SBA is going to use those two  

pieces of information to look up your loan to  make sure you can apply for forgiveness. Now  

I have not successfully gone through the  entire process yet because all of my clients  

I've tried they either don't have their  banks opted in or the banks are opted in but  

the SBA still doesn't think that it is. So I can't  really provide any more guidance through that,  

I just know that those are the two pieces  of information you need to get started.  

Fairly simple like I said, the SBA thinks it's  going to take you five to six minutes that's  

it. Now the SBA after the fact might request more  information from you you know if you had draw two,  

they might request more information to  prove that you had a decline in revenue.  

And they probably won't request it up front but  you know, they might do like random spot checks.  

Or they might suspect something, they can go  back and request more information from you.  

So be prepared for that also. So with a simplified  method it could make things a lot easier, it could  

really wrap up this program. It can make  things easier for you as the borrower so  

you maybe you don't have to spend so much time  hiring, or time or money hiring people like me  

to do your forgiveness applications for you. It  should hopefully be a lot easier. If you have any  

feedback about it please leave me a comment down  below, you know tell me what you think about it,  

and uh yeah that's all I've got for today. Thanks  for joining me. Again I'd love it if you consider  

subscribing to my channel, and smashing that  like button, and sharing this video with anybody  

who you might think might find it helpful.  And I'll see you next time and stay safe.