This week, a new round of funding was made available for Paycheck Protection Program (PPP) loans. While it’s been a mad dash to secure funds for small business borrowers, the work is far from over once the loans are issued. Eligibility for loan forgiveness has been just as confusing – if not more so – than securing a PPP loan. The loan forgiveness process is one of the most important aspects of the program to both borrowers and lenders, and it is one of the biggest areas of uncertainty. The interim final rule and other FAQs released by the SBA and Treasury address some forgiveness qualifications, but many lenders are waiting for additional guidance from the SBA. While there are many unanswered questions to this point, the CARES Act and FAQs have set some specific parameters that borrowers must follow in order for their loans to turn into grants.
Here are four signs your loan will NOT be forgiven.