How Long Does SBA Have to Approve PPP Loan Forgiveness?
The answer is simple.
The SBA has up to 90 days to approve or deny your PPP loan forgiveness application.
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SBA’s role in PPP loan forgiveness
The SBA’s role in PPP loan forgiveness is to ensure that the loan is forgiven in accordance with the terms of the program. The SBA will review the application and supporting documentation to determine if the borrower has met all of the requirements for loan forgiveness.
The SBA has up to 90 days from the date of receipt of a complete application to issue a decision on loan forgiveness. If the SBA determines that the loan is not eligible for forgiveness, they will notify the borrower and provide an explanation for their decision.
How long does SBA have to approve PPP loan forgiveness?
The economic stimulus package known as the CARES Act, which was passed by Congress in March 2020 in response to the COVID-19 pandemic, established the Paycheck Protection Program (PPP) to provide forgivable loans to small businesses. The PPP loan program allows small businesses to apply for a loan through the Small Business Administration (SBA) of up to 2.5 times their monthly payroll expenses, with a maximum loan amount of $10 million.
If you have received a PPP loan, you may be wondering how long you will have to wait for SBA approval of your loan forgiveness application. According to the SBA’s website, the agency has up to 90 days from the date you submit your complete loan forgiveness application to approve or deny your request.
If you are approved for loan forgiveness, the SBA will notify your lender and they will start sending you periodic payments equal to the amount of your forgiven debt. If you are not approved for loan forgiveness, you will be responsible for repaying your loan in full, with interest, over a period of up to 10 years.
What factors affect the timeline for SBA approval?
The answer to this question depends on a few different factors, including the size of the loan and the number of borrowers. Loans of $50,000 or less will generally be approved more quickly than larger loans. Also, if there is only one borrower on the loan, the approval process will likely be faster than if there are multiple borrowers.
Another factor that can affect the timeline for SBA approval is whether or not the borrower has submitted all of the required documentation. The SBA will need to review financial information and other documentation in order to determine whether or not a loan should be forgiven. If a borrower has not submitted all of the required documentation, this can delay the approval process.
It is also worth noting that the SBA may take longer to approve loans that are for businesses in certain industries. For example, loans for businesses in the hospitality industry may take longer to be approved because these businesses have been particularly hard hit by the pandemic.
Tips for expediting the SBA approval process
The SBA has up to 90 days to review a completed forgiveness application and issue a decision. However, there are some things you can do to expedite the process:
-Submit a complete and accurate application. Incomplete or inaccurate applications will cause delays.
-If you received your loan through a bank or other financial institution, check with them to see if they have any tips or requirements for submitting your forgiveness application.
-Keep in touch with your lender throughout the process and follow up if you haven’t heard anything after a few weeks.