Dear Sir or Madam,
When do think you'll have the "SIMPLIFIED” PPP Loan Forgiveness application available?
I received my PPP loan with the understanding that I could apply for forgiveness after 8 weeks. The 24-week extension that was a part of the Paycheck Protection Program Flexibility Act did not cancel the 8-week option. I checked on that matter with both the SBA General Counsel’s Office and with a liaison in my Congresswoman’s office.
At this point, for those us who wish to get forgiveness on our PPP Loans your delays are (a) costing us money in interest fees (albeit not a great sum) and (b) more importantly blocking some of us from filing for unemployment insurance because we still have an "active" PPP loan and are barred by a double-dipping exclusion that should not apply because we should've been able to get forgiveness.
I’ve been in touch with the originating lender, Celtic Bank and they tell me that the portal has been completed and that it is already being rolled out to their direct borrowers.
I was also told by Celtic Bank that they were responsible for the portal design/operations that will be employed by SQUARE and I believe BLUEVINE. I understand from the SBA that some lenders established a fee splitting arrangements with companies like SQUARE to service clients more efficiently and over a consumer broader base that if they had handled all operations alone.
The representative with whom I spoke at Celtic Bank explained that the design/programming would be identical to theirs but branded as SQUARE, just like the loan itself where the funds came from Celtic Bank funds with SQUARE as the applications filter. The person I spoke with suggested I ask SQUARE about the delay because she indicated you should already have all the tools necessary to implement receipt of applications or at the very least you should be able to provide a reasonable target date for doing so. She said she understood my issues and that Celtic Bank expedited their process precisely because further delay was considered unfair to the borrowers.
In any event, I really want to understand when the PPP Loan Forgiveness application will move forward. The answers I’ve received thus far have been completely unsatisfactory.
I’ve been told that SQUARE cannot forgive loans because the SBA has not finalized their procedure This is not true because the SBA has a Loan Forgiveness Application available since June and in fact on June 16, 2020, when the SBA released an updated PPP Loan Forgiveness application reflecting the changes made by the Paycheck Protection Program Flexibility Act. Accompanying the standard application was a new “EZ” loan forgiveness application for self-employed individuals and businesses whose loan forgiveness eligibility is not impacted by employee salary reductions or employee reductions. I am self employed and if SQUARE accepted the application my loan would already be forgiven. I am a self employed individual.
I’ve also been told by SQUARE that Congress has not yet finalized Loan Forgiveness procedures and that everything is still in flux so the Loan Forgiveness process cannot be initiated by SQUARE. This is simply not factually accurate.
I’ve also been told repeatedly that I’d just have to wait but one of your representatives offered the option of paying the loan back now. Can you imagine how ridiculous that sounds to someone whose business is still reeling from the impact of COVID-19 and used the loan for owner compensation replacement and expenses.
Please offer me a reasonable answer.
