Treasury clarifies PPP loan forgiveness process

Tue, 06/23/2020 - 5:15pm

WASHINGTON, D.C. — The U.S. Department of Treasury issued a new rule last night, according to a news release from Senator Susan Collins, specifying small business owners who have received a Paycheck Protection Program (PPP) loan can submit a loan forgiveness application immediately after they have spent the funds.

At a Small Business Committee hearing earlier this month, Treasury Secretary Steven Mnuchin was asked whether small businesses must wait for the end of the 24-week duration of the loans to seek loan forgiveness. 

A number of business owners have expressed confusion about when to apply, per the release.

This new rule clarifies that borrowers can apply for loan forgiveness at any point after they have used all funds for which they are seeking loan forgiveness.

The most recent U.S. Census survey shows 76% of Maine small businesses received funding through PPP, and the program is helping to sustain approximately 200,000 Maine jobs, per the release.