1851

<a href="https://1851franchise.com/how-ppp-loans-can-help-franchisees-save-their-businesses-2713066">PPP loan forgiveness has been a major worry for many franchisees</a> since the first round of federal funding became available. In fact, some business owners <a href="https://www.eater.com/2020/5/4/21246539/eaters-digest-naomi-pomeroy-david-tobias-ppp-loan?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">chose not to take money they had been awarded</a> for fear of incurring more debt if they misinterpreted the program's guidelines.<a href="https://www.investopedia.com/paycheck-protection-program-flexibility-act-of-2020-an-overview-4846944?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">The Payment Protection Program Flexibility Act</a>, which President Donald Trump signed into law in June, eased some of these fears. The initiative shrunk the percentage of PPP funds business owners were required to spend on payroll from 75% to 60% and extended the time period to use the funds threefold, from eight weeks to 24 weeks. Business owners also have five years to pay back their loan at one-percent interest if they don't qualify for forgiveness.&nbsp;Today the Treasury Department announced that it <a href="https://www.wsj.com/articles/u-s-to-start-forgiving-ppp-loans-after-borrowers-complained-11601414687?mod=lead_feature_below_a_pos1&utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">expects to begin approving and paying out forgiveness requests for Paycheck Protection Program (PPP) applicants as soon as late this week</a>.<a href="https://www.wsj.com/articles/u-s-to-start-forgiving-ppp-loans-after-borrowers-complained-11601414687?mod=lead_feature_below_a_pos1&utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">According to The Wall Street Journal</a>, The Small Business Administration (SBA) has received more than 96,000 PPP loan forgiveness applications since that portal opened August 10, but has approved none, William Manger, the agency's chief of staff, told House lawmakers last week."We've submitted a number of applications," John Buhrmaster, president and CEO of Scotia, N.Y.-based 1st National Bank of Scotia, <a href="https://www.americanbanker.com/news/house-ppp-forgiveness-plan-is-better-than-nothing-bankers-say?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">told American Banker</a>. "We're four to six weeks into this, and we have not heard one word back."Some banks find the forgiveness process too complex and time-consuming. That is why many of the nation's largest banks have indicated they are <a href="https://www.bankingdive.com/news/many-banks-not-yet-accepting-ppp-forgiveness-applications/585163/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">waiting to see</a> if new guidance or legislation will streamline the forgiveness process. They also want to see if Congress will pass legislation providing automatic forgiveness for loans of $150,000 or less.Treasury Secretary Steven Mnuchin <a href="https://www.banking.senate.gov/hearings/09/14/2020/the-quarterly-cares-act-report-to-congress?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">told a Senate panel last week</a> he would support simplified forgiveness, but legislation is needed.&nbsp;The latest PPP plan, couched in <a href="https://www.usatoday.com/story/news/politics/2020/09/28/covid-19-democrats-intro-2-2-trillion-bill-more-stimulus-checks/3564230001/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">a stimulus bill introduced by House Democrats</a>, would automatically forgive loans of $50,000 or less and offer a simplified forgiveness application for loans between $50,000 and $150,000. The proposed <a href="https://www.nrn.com/restaurants-ready/22-trillion-covid-relief-bill-includes-120-billion-restaurants?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">COVID-19 relief bill</a> also includes $120 billion in funding to help restaurants specifically.Meanwhile, 10 trade groups, including the American Bankers Association (ABA), the Credit Union National Association, the Independent Community Bankers of America and the Bank Policy Institute, have written <a href="https://www.aba.com/-/media/documents/letters-to-congress-and-regulators/joint-trades-letter-supporting-ppp-funding-and-modified-forgiveness-process-09292020.pdf?rev=c0b4dae833c446fe8325eeb5224501ac&utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">a letter urging Senate and House leaders to pass a measure reauthorizing PPP funding</a>. The program closed to new applications August 8, leaving $130 billion unallocated.About 84% of borrowers surveyed last month by the <a href="https://assets.nfib.com/nfibcom/Covid-19-11-Questionnaire-and-Write-up-FINAL.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=ppp-loan-forgiveness-could-begin-this-week-2713983" target="_blank" rel="nofollow">National Federation of Independent Business</a> said they have used all of the PPP funds they were given. About 44% said they would apply for a second PPP loan if one were allowed."As these businesses continue to recover, they will need additional resources to maintain business operations, and the PPP remains the most efficient and effective means to assist them through this challenging period," the groups wrote.While lawmakers have sporadically proposed several initiatives to restart the program — including some that would allow some businesses to get a second loan — none has taken hold.

PPP Loan Forgiveness Could Begin This Week

1851 Franchise

Business owners who don’t qualify for forgiveness will have five years to pay back their loan at one-percent interest.

ppp-loan-forgiveness-could-begin-this-week

Image Studios

IMAGE Studios Offers a Scalable, Real Estate-Focused Franchise Opportunity in an Industry Projected to More Than Double Within a Decade

image-studios-franchise-opportunity

ServiceMaster Restore

ServiceMaster Restore - Disaster Response - 1851 Franchise

When Disaster Strikes, ServiceMaster Restore Moves

servicemaster-restore-disaster-response-carmen-coleman

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

PPP Loan Forgiveness Could Begin This Week

MORE STORIES LIKE THIS