Everything seems to be working in slow motion. I keep getting questions from clients asking when the loans are going to be forgiven. Many have been waiting a long time.
Let’s review the process. After we fill out Form 3508 and the accompanying schedules, it must be sent to the bank. Once at the bank, it must be reviewed. If we are successful at the level, the bank must then send it to the SBA. If we are again successful, the SBA must then send money to the bank so that the bank can actually forgive the loan.
The entire process from start to finish should not take forever. The problem is there are so few people actually working. In published reports, less than 5% of the 5.2 million loans have even been looked at by the government, let alone funded.
This is causing entrepreneurs to be uncertain about a difficult process. I just wrote a piece showing that we will need to reduce the deductions for any amount used in forgiveness. What if it ultimately isn’t forgiven? What if the government or the bank has difficulties with the documentation that was sent in? What if you completed your Form 3508 incorrectly?
This could mean that you are forced to pay taxes this year that were too high. This might also mean that we need to do an amendment.
Further uncertainty exists in the legislative process. Lawmakers on both sides of the aisle have signaled that they would like to make the expenses used in forgiveness of these loans deductible. They have other legislative priorities, like funding the government to avert a massive government shutdown, but if they’re talking about it, maybe it’s possible.
Stay tuned. I’ll try to keep you informed.
Let me leave you with this.
As we go further down the rabbit hole on this C-19 pandemic, I’m wondering where all of you are landing on our elected officials urging us to not get our families together for Thanksgiving.
Do you land on the side where you would rather err on the side of caution? Or are you the type that says as soon as these people start paying my bills, they can tell me how many people to have at my table.
It’s not really an issue for my family. It’s just me, my wife, my daughter, and my mom. The four of us get together religiously for Sunday dinners anyway. We’ll make a turkey, hop in the hot tub, drink some champagne, and celebrate.
My point is when they take away all of our traditions, what do we have left to make us sane? In these difficult times, isn’t it even more important to celebrate our traditions? Doesn’t it become that much more relevant to celebrate the things that make us Americans in the first place?
I understand why our esteemed health officials and government officials are recommending these actions, but what about that grandfather or grandmother, where this is probably their last Thanksgiving? The only thing they want in this world is to see their family together one last time. If that person was you, what would you want?
I’m not giving out advice, just asking you to think. If you’re that concerned, go get tested. On the other hand, if you’re that worried, don’t go at all. Just wondering where everyone is on this one.
Wherever you land, we’re all going to get through this. We’ll all get through it together.
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