The Paycheck Protection Program (PPP) has been closed to new applicants since August 20, 2020. Although Congress is still considering extending the program, nothing has yet to become official. Millions of small businesses have applied for this type of loan since the beginning of the pandemic. But now, some of these applicants that have been approved for PPP loans and received funding are trying to return the loans in fear they have possibly committed fraud.
Many small businesses have turned to these loans, and similar types because they needed it to survive. But uncertainty remains around the use, rules and regulations of these “forgivable” loans. Guidelines were slowly introduced over many weeks and, even with that, questions about loan usage still remain. Many have even returned the funds and found themselves in an even worse situation.
What is certain and has been stated by the government is that the Treasury will hold businesses liable that took out unnecessary PPP loans. This has caused massive confusion (and anxiety) over this program that was supposed to be direct and easy for struggling small business owners.
As a word of advice, it is wise to keep in touch with your lender for guidance and updates on rule changes. They will help you remain aware of modifications that can affect your ability to use your funding, legally. This will help avoid sacrificing full loan forgiveness.
Many businesses are experiencing financial difficulty in these unprecedented times. Some small businesses have been denied these loans – even when it is their only hope. If your small business is consumed with debt, for any reason, American Finasco can help. We have several options to reduce your commercial debt which allows you to stay focused on your business. We provide strategies and take the pressure off business owners who are having a hard time managing their debt. The first step when dealing with commercial debt is a phone call to American Finasco. We provide our clients effective solutions for business debt relief. Contact us today to get your business on the right track! Visit Contact Us and complete our Online Form for a free consultation or call (800) 299-2909. We look forward to speaking with you.