PPP loan forgiveness, apply now or should still wait?

Last time I read the discussion on this topic (about 2 months ago), I think the consensus is to wait as the SBA may provide further guidance to simplify the forgiveness process.

I wonder if there were any new developments since then. Shall we advise clients to keep waiting or shall we advise them to file for the forgiveness application now?

The only thing I'm having clients wait for is to maximize the interaction between PPP forgiveness and Employer Retention Credit

Advising mine to go ahead and apply for forgiveness.

I am telling our clients that we will not be able to help until June so just wait. I think I read that only 35-40% of loans have been forgiven so far. I suspect the SBA knows that they are going to be overwhelmed soon enough and that they will announce that all loans under $50k (or maybe even $150k) are automatically forgiven with no action on your part.

With most loans having a deadline of sometime in August, how would you like to be the SBA. I am sure all their employees are looking forward to a June, July, August vacation and they have a tsunami of forgiveness applications coming their way.

There has to be some automatic forgiveness coming

I'm telling mine to wait on the bank to request. We don't know what exactly the bank will want, if anything, for the documentation. Many will have online portals for the one page sign off....they'll initiate.

I have not seen any banks ask a client to apply for forgiveness.

I'm telling clients to apply when they want. If they want out help, it will be a while as we are very busy.

If everyone is talking about PPP1 loans, I advise to go ahead and request forgiveness. I don't know if it is going to get much simpler for loans <$150,000 than Form 3508-S that came out Jan 19, 2021. There are NO requirements to provide any documentation to the bank, in fact I believe the instructions specifically say the lender cannot do this. You are supposed to have it available in your files if the SBA requests it.

I don't think it is a requirement of the bank to request or remind you to do this. Some banks are reaching out probably just so they can get it done now rather than later.

I am sending in our two PPP1 loan forgiveness apps today.

I've begun receiving emails from banks with links to the forgiveness apps on their portals.
I see no reason to stall on the loans under $150k.

November IRS Notice said if all the factors are clear that it is going to be forgiven - it is done at that point(they said that has always been the case)!! I think all under $150,000 per them was done, or if something was wrong they either would not pursue it or if found later it would be a correction when found. I have a few friends who have said accrual yes probably forgiven in 2020, but for some reason they are saying cash clients maybe no. They are getting a signed statement from their clients as to what year they want it in.