As we get closer to Paycheck Protection Program Loan Forgiveness, our team is working hard to keep our banks and credit unions up to date on the latest out of the SBA as well as out of Numerated.
With that in mind, we wanted to provide everyone with a quick update on PPP forgiveness timelines and to invite you to watch our on-demand webinar, where we demo a lot of new innovation that we’ve developed over the last week to improve and simplify the SBA forgiveness application.
First, let’s start with an update on timelines.
PPP Forgiveness Timeline
Borrowers can start applying for forgiveness anytime after their covered period ends. The covered period is either the 56 days (8 weeks) after disbursement, or with the latest guidance, 56 days following the start of the first pay period after disbursement. So, based on the timing of the program, some small businesses can request forgiveness as early as June 1.
[READ OUR PPP FORGIVENESS FAQ FOR MORE INFORMATION]
Some proactive businesses are already planning for forgiveness. They will have all their documentation ready and will be looking to engage as soon as their covered period ends. We will be ready to support them.
That said, many other businesses will not be as organized.
The new, complex forms and the documentation requirements (not all of which will be immediately available)—all coupled with the limited financial incentive to complete forgiveness before the end of the six-month interest-free period—will have many borrowers taking their time.
Some borrowers will wait until the end of the six-month deferred payment period, and then there will be a glut of businesses rushing to apply under the wire. Our perspective is that we need to support this group equally in order to avoid a traffic jam of businesses needing assistance immediately before the process closes.
Numerated Forgiveness Launch Timeline
Numerated customers will be ready to start processing forgiveness applications the week of June 1, with the following milestones prior to launch:
- May 26: Loan import functionality added in UAT environments
- May 28: Loan import/export functionality in full production, subject to SBA guidance
- Week of May 25: Form 3508, the PPP Forgiveness Application, will be in UAT and available for testing
- Week of June 1: The Forgiveness Application will be in full production (a specific date will be communicated as launch approaches)
- June 8 and beyond: Continual updates and enhancements will be made to the solution to ensure an exceptional experience
As has always been the case in the PPP program, these timelines are subject to continued guidance from the SBA. If we see a significant change in the program announced, it could have an impact on timing.
We will be providing new features continually after initial launch, including improvements to queue management, document upload speed, and UI improvements to enhance the Tool Tips embedded in the application for customers.
To see our latest demo and recent product enhancements to our PPP Loan Forgiveness Solution, watch our on-demand webinar, today.