The Foster Company Offers PPP Loan-Forgiveness Education and Assistance as SBA Releases Forgiveness Application While Issuing New Guidelines
LOS ANGELES, May 26, 2020 /PRNewswire/ -- The Foster Company (https://thefosterco.com/) recently highlighted its experience and services helping secure Paycheck Protection Program (PPP) loan-forgiveness for clients, just as the SBA issued new guidance related to such loans, along with a new SBA loan-forgiveness application process. PPP loans are designed to provide direct incentives for small businesses to keep workers on the payroll, despite economic hardship during the COVID-19 pandemic. These loans will be forgiven if small businesses keep employees on the payroll for eight weeks, and the money is subsequently used for payroll, rent, utilities or mortgage interest. The Foster Company has over two decades experience working with both the SBA and lenders.
"Although the CARES Act provides relief to small businesses, that assistance must be formally requested through an application process," said Christopher Foster, Founder and Owner of The Foster Company. "And Congressional funds allocated for this forgiveness are limited – so mistakes in the application process can be both costly while also losing precious time. We have always been sensitive to the needs of small businesses, and have established connections with both the SBA and multiple commercial banks. This allows us to streamline the process, with no disastrous paperwork errors. Call us today to see how we can help you get the assistance you need, so you can get back to the daily job of running your business."
The Foster Company: What Are PPP Loans and Loan Forgiveness?
The 2020 U.S. CARES Act provided $376 billion in relief for American workers and small businesses, including PPP loan forgiveness. PPP Loan Forgiveness is available through any existing SBA 7(a) lender, or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating in the program. The government will also make other regulated lenders available as they are approved and enrolled in the program.
This loan relief must be applied for directly from the SBA, through a variety of applications like the Economy Injury Disaster Loan (EIDL) and EIDL Advance. And under the new procedures issued, borrowers must request forgiveness of PPP loans by filing SBA Form 3508: the Paycheck Protection Program Loan Forgiveness Application. The application has four specific components: the PPP Loan Forgiveness Calculation Form, PPP Schedule A, the PPP Schedule A Worksheet, and an optional PPP Borrower Demographic Information form. The first two are required and must be submitted to the lender.
Borrowers with loans over $2 million are additionally required to check a box alerting the SBA to the size of the total loan. This provision flags these specific PPP loans, and the Treasury Department has already stated it will audit each of them. Thus it is especially important that all paperwork be filed correctly, and each company comply exactly with the rules outlined in these guidelines. Small business owners can often find this process both baffling and time-consuming, especially as they struggle to keep their businesses afloat.
About The Foster Company
The Foster Company is a full-service commercial finance brokerage and boutique consultancy company serving the southern California market. Owner and founder Christopher Foster is a graduate of Humboldt State University and has over 17 years' experience working directly with the SBA and multiple commercial banks to secure loans for his clients. Christopher is an expert in Commercial Financing, including Conventional, SBA and Bridge Financing, and has successfully negotiated financial services for a wide variety of businesses and individuals. Learn more at: www.TheFosterCo.com.
Media Contact:
Christopher Foster
833-367-4482
[email protected]
SOURCE The Foster Company
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