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Tuesday, 11 August 2020 21:04

SBA Suggests Getting Help With Loan Forgiveness Applications

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Although there’s been a push for Congress to greatly simplify the process of seeking forgiveness for Paycheck Protection Program loans of less than $150,000, it seems likely those receiving loans above that amount will still need to provide adequate documentation for how the funds were spent.

If your business is preparing to apply for loan forgiveness, the Small Business Administration (SBA) says help is available.

 

“We really encourage you to reach out to our SBA resource partners to assist with the forgiveness application,” Sonia Smith, a public information officer for the SBA, said during the Collision Industry Conference (CIC), held virtually in late July. “Whether you’re using the EZ Loan Forgiveness Application or the long form, we can help in making sure it is all correct, making sure you have the right documentation. So when you submit it to your lender, you’ve got the package correct from the beginning.”

 

Smith said loan recipients can use the “Find local assistance” page on the SBA website to locate SBA resource partners in their area.

 

An analysis conducted by the Society of Collison Repair Specialists suggests nearly 20,000 body shops nationwide received a PPP loan. The data, released in July by the SBA and the Treasury Department, indicates 2,500 independent repairers received loans of $150,000 or more.

 

An industry survey in June found among 200 shops that had received a PPP loan, almost a third (31%) had already applied for loan forgiveness. Not one of those shops reported their application had been rejected, and in fact, nearly 84% said they had already received notification that repayment of the funds was not necessary.

 

More than three in five of shops receiving a PPP loan as of June had not yet applied for having repayment waived, though more than 90% of those said they intended to do so.

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