Lumen Network supported more than 100 non-profits and small businesses that funded $73 million of PPP.
What You Need to Know About PPP Forgiveness
Deadline: The deadline is practical – you want to have your forgiveness determination in place before you have to start making payments. That way, your payments are minimized and you get the full benefit of the amount forgiven. How do you know when you will start making payments?
Formula for Determining When PPP Payments Could Start:
Date of PPP funding + 24 weeks (your covered period) + 10 months = approximate date of first payment.
For example, the first PPP fundings were in April. If we add 24 weeks and 10 months, we get to July 2021 before the first payment could be due.
(updated 1/13/21) PPP applications re-opened on Monday 1/11 to a select group of recipients, and will open to all lenders starting Tuesday 1/19/21. Due to heavy criticism of PPP round 1 funding going disproportionately to larger established businesses and disproportionately away from minority owned, veteran owned, and other disadvantaged businesses, the SBA has defined a rollout schedule to allow early applications from disadvantaged businesses and the smallest banks. Here’s how it will work...Learn More
The SBA has released their PPP guidance around the new stimulus legislation passed on December 27th, 2020. This guidance includes interpretations of changes to forgiveness as well as interpretations of the second draw loans. We reviewed the SBA’s documents and found the following highlights most interesting to small business owners.
*The PPP and EIDL programs are subject to the rules and regulations as set forth and administered by the United States Small Business Administration (SBA). It is understood by all parties that the SBA is the final authority in matters related to these programs. Given that SBA policies are changing on a frequent basis, Lumen Network is working on a best efforts basis to support and guide any borrower.