Message from the KBA
Message from Ballard Cassady
08/25/2020I have received several phone calls for news on Congressional approval of blanket forgiveness on PPP loans of $150,000 and under. The news is mixed.
The better news: we think there’s a good chance it happens. The worse news: the time frame is unclear.
If Congress passes this provision, it’s likely to be included in a bigger package rather than as a stand alone bill. A new package can’t be taken up until Congress comes back in session in September. Even if it’s the first order of business upon their return, which is highly unlikely, it would still take SBA and/or Treasury a couple of weeks to generate the essential forms to implement it. Based on those projections, October is the earliest we can hope to see a ‘process’ take shape. Meanwhile, most banks are starting with the largest (over $150,000) loans and working down to the smaller ones, so the Congressional timetable could ultimately sync up fairly well with your bank’s.
We’re maintaining all possible pressure on Congress for these forgiveness provisions, and we’ll keep these updates coming.
President & Chief Executive Officer