Since April 2020, more than 5,400 lenders across the United States have faced common challenges arising from the Paycheck Protection Program (PPP).
Participating lenders have been charged with interpreting a slew of evolving regulatory guidance while vetting millions of borrower applications.
Participating lenders have also been tasked with responding to information requests from Congress, federal regulators and law enforcement authorities investigating potential fraud and abuse in the emergency loan program. Yet another challenge looms on the horizon as lenders determine whether and to what extent disbursed PPP loans are eligible for forgiveness.
At first glance, the forgiveness process appears simple. A PPP borrower must complete an application for forgiveness and submit the application to its lender. The lender is then responsible for approving or denying the borrower’s forgiveness application by verifying certain documentation and calculations and then requesting payment from the SBA, as applicable.
However, because the lender stands between the PPP borrower requesting forgiveness and the federal government making payment, lenders face a number of challenges and risks in connection with PPP loan forgiveness.
Keep reading this article at: https://www.mondaq.com/unitedstates/financial-services/977036/ppp-loan-forgiveness-challenges-for-lenders
The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized. Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/
