Topic

9-Jun-2021 12:01am

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?

9-Jun-2021 5:51am

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

9-Jun-2021 6:31am

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

9-Jun-2021 8:29am

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

9-Jun-2021 8:35am

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.

9-Jun-2021 10:33am

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.

9-Jun-2021 1:28pm

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

10-Jun-2021 5:52pm

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

11-Jun-2021 2:43am

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?

11-Jun-2021 3:45am

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-Jun-2021 5:31am

Did anyone receive the promissory note?

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

11-Jun-2021 6:44am

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