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PPP loan forgiven. What's next?

Technical topics regarding tax preparation.
#1
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Client said about two weeks ago he was informed by his lender in an email that his PPP loan forgiveness had been approved by the SBA. But then nothing had happened after that. What is even more strange is that two weeks after he was informed of the full forgivenness, the lender's website is still showing the full amount as outstanding loan balance.

He asked me what was supposed to happen after the forgiveness was approved, such as if the promissory note that he had signed would be returned to him, if he would receive an official document from the SBA that his loan had been forgiven, etc. I absolutely have no idea at all.

Does anyone have any idea about the timeline of the sequence of events that will happen after a PPP loan forgiveness has been approved?
 

#2
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Why not have him ask the bank? After all, this is a loan issue, not a tax issue.
 

#3
Pitch78  
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As I recall, your client will receive a confirmation letter from the SBA that the loan is forgiven.
 

#4
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Yes you get some type of letter from SBA and it tells you the amount of loan and interest forgiven. When I am in the office I can post a copy of what it looks like
 

#5
Joan TB  
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a) I did not get a letter from the SBA.
b) I got a letter from my bank stating that my loan had been forgiven and paid in full.
c) I received the original loan document from the bank stamped "paid in full" with the date.
d) Since I have online access to my accounts, I saw the transactions that posted for both interest and principal paid.

All this happened within about a week of my original notification that my forgiveness application had been approved.
 

#6
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Joan TB wrote:a) I did not get a letter from the SBA.
b) I got a letter from my bank stating that my loan had been forgiven and paid in full.
c) I received the original loan document from the bank stamped "paid in full" with the date.
d) Since I have online access to my accounts, I saw the transactions that posted for both interest and principal paid.

All this happened within about a week of my original notification that my forgiveness application had been approved.


I think this basically fully answered his questions, I will pass on the information to him. Thank you.
 

#7
Pitch78  
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The SBA letters I have seen are in the form of the letter on page 10 of this link.

https://www.baldwincpas.com/system/file ... ember4.pdf
 

#8
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I’ve seen a number of those SBA letters, but not in all cases
 

#9
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HenryDavid wrote:I’ve seen a number of those SBA letters, but not in all cases


Did you mean some did not receive the SBA letter?
 

#10
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Correct, I believe the SBA is issuing them but for whatever reason not every bank seems to have them or is forwarding them on to the borrower
 

#11
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Did anyone receive the promissory note?

Generally, a promissory note is returned to the borrower after a loan is paid.
 

#12
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The loan is with the bank, the SBA is not a party to the loan (other than perhaps as guarantor).
 


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