Companies that received less than $ 50,000 in paycheck protection program funds can now file a simplified form with their bank to obtain waiver on this loan, the US Small Business Administration said Thursday evening.
The one-page form asks for basic information such as the number of employees, the size of the loan and the amount to be waived. That’s it.
The employer does not even need to break down the amount for the payroll, although the instruction requires evidence that the money was used for employees (or, in the case of self-employment, transferred to the entrepreneur (s)). ) This documentation could consist in the provision of bank statements.
Established by the CARES Act at the start of the pandemic, the PPP issued more than $ 500 billion in one-time loans, including $ 2.5 billion in Granite State. The loans would be fully awarded if the beneficiaries would spend at least 60% on payroll for the same number of employees, with the same salary and hours as before the pandemic. The rest must be spent on rent, mortgage interest and utilities.
The amount not waived must be repaid over a period of two years with 1% interest. However, companies don’t have to start paying until May 2021.
Although there was a maddening rush for the program to begin with, applications slowed down over the months, leaving around $ 130 billion on the table on August 8 through the forgiveness process at the end of the program, not wanting to go into further debt.
This was especially true for small businesses. Although the loan amount – 2.5 months of payroll – could be as high as $ 10 million, the average loan size in the country was $ 105,000 and two-thirds of companies received less than $ 50,000.
New Hampshire approved 24,052 loans totaling $ 2.55 billion with an average loan size of just over $ 105,000.
While in New Hampshire on October 2, Jovita Carranza, administrator of the US Small Business Administration, told NH Business Review that the agency was considering streamlining the process for recipients of $ 150,000 in loans.
Carranza also said the agency is starting to clear the unoptimized applications that have already been submitted, meaning the banks that processed the loans will be refunded and the companies will be able to take the loans off their balance sheets.