The process for receiving loan forgiveness from the Small Business Administration under the Paycheck Protection Program seems simple. An HVAC contractor who received a PPP loan needs to show that the money was spent in the ways dictated by the program. This includes proving that at least 60 percent of the money went to payroll and that contracts for other expenses, such as rent, were in place prior to Feb. 15.
The SBA opened the application process and posted the necessary forms online. As with the loan application, forgiveness requires a two-step process. The HVAC contractor submits the form to the bank that originated the loan. The bank then reviews the material and submits it to the SBA for review. Those seeking loan forgiveness need to include supporting documents such as tax forms and utility statements. The SBA then either forgives the loan or flags it for inspection. Many lenders are finalizing their own processes and are telling borrowers that they need to wait to submit their applications.