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The U.S. Treasury Department has announced that the SBA will begin processing PPP loan forgiveness applications, following a delay which left many caught in a backlog. PPP borrowers are eligible for forgiveness if they meet the program’s requirements, which include using at least 60% of the funds for payroll costs and the remainder for other eligible uses (including rent, utility bills, and mortgage interest) during the covered period. For full forgiveness requirements, visit nar.realtor/coronavirusSBA. PPP borrowers should submit their forgiveness applications directly to the SBA lender with whom they worked, who will them pass them to the SBA for processing. For detailed instructions on how to fill out the PPP EZ Forgiveness application form, watch NAR’s step-by-step video.
The SBA is expected to quickly approve forgiveness applications for loans less than $2 million, with reports that the backlog may be cleared in as little as two weeks. PPP borrowers have 10 months from the end of their loan’s covered period to apply for forgiveness before any payments are due on the loans.