How Loan Forgiveness Works in PPP Loans
On March 27, 2020, President Trump signed into law the $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). Of the $2.2 trillion in stimulus, $349 billion was allocated for Paycheck Protection Program loans (PPP). On April 24, 2020, the President signed the Paycheck Protection Program and Health Care Enhancement Act, which amends the CARES Act. Among other things, the Amendment increased the funding for PPP loans from $349 billion to $659 billion.
Now that the first round of funding has happened and the second round is underway, questions are coming up about how the loan forgiveness portion of the PPP works. It is worth noting that many unanswered questions remain. This article will outline in a question and answer format how the loan forgiveness appears to work based on the information that is currently available. Section 1106 of the CARES Act addresses loan forgiveness, and the SBA has provided a small amount of additional guidance... READ MORE