As I prepare for my Aminar on the new PPP Flexibility Act later this afternoon, I am completely baffled by what to present.  Here is the deal: while the legislation is impactful in it's intent, the lack of clarity and detail leaves all of guessing.  There is not much to say until we have more guidance and a new application to consider. And out of fairness to the teams who I know are working on this, this process will take some time.

One of the most rational propositions I have heard that is floating around Washington D.C. these days is that all PPP loans under $150,000 will automatically be forgiven.  This makes up about 80% of all of the loans.

If things stay the same – the smaller companies are going to suck dozens of hours each into trying to figure out their forgiveness applications.  And in many instances, they will be hit with expensive bills from their accountants who need to be compensated for helping them get through it.  For business owners, this is time taken away from their core mission of rebuilding their businesses, and dollars they need to hire, pivot and market will now be wasted away on government forms.

Meanwhile, many banks, especially smaller community banks and credit unions who stepped up to the plate to help with the PPP process, are in complete disarray trying to figure out how to handle and process the forgiveness process. This will be exponentially more difficult and expensive then it was to get the money out.

Perhaps those who received the smaller PPP loans can sign an attestation that they used the loan proceeds on payroll, rent, interest on their building or utilities, and be forgiven. A small fraction of them could be audited as a check and balance.