Thousands of businesses and independent contractors in the Crossroads who received loans through the federal Paycheck Protection Program will soon embark on the forgiveness process, if they haven’t already.
Recipients that meet requirements were able to start submitting applications to have their loans forgiven on June 1.
The University of Houston – Victoria Small Business Development Center will host a virtual discussion on Wednesday morning to help loan recipients navigate the dynamic process.
Businesses were allowed to apply for the loans if burdened by the COVID-19 pandemic as part of the CARES Act that Congress passed in late March. Those that comply with federal requirements, most notably using the money to keep paying employees, will be eligible for loan forgiveness.
About 370 companies in the Crossroads were approved for PPP loans of $150,000 or more, including 38 that each secured more than $1 million, according to SBA data. An additional 1,930 businesses and independent contractors obtained loans of less than $150,000 each, which collectively amounted to about $67.4 million.
David B. Plemons CPA, Inc., based in San Antonio, will lead the conversation on Wednesday.
Plemons and his team previously presented training about the loan application process, said Lindsay Young, director of the UHV SBDC.
“Now that we’ve kind of marched down the calendar a little bit, it is more about what is it going to take to seek forgiveness? What does that look like? Who do you need to work with?” she said. “So it is utilizing the loan and figuring out the forgiveness aspect of it and what you need to do to qualify.”
Young said she hopes the discussion will help loan recipients feel more confident in their understanding of the forgiveness process and what they can use their loans for, if they have not already used the funds.
Participants are encouraged to email their questions in advance to Jean Smith at email@example.com, but Young said questions from attendees will also be taken during the webinar.
“This isn’t a program that has been around for years, like other SBA programs. It is new to us, it is new our local lenders and it is new to our clients and the business owner world,” she said. “There should be questions about it and we want people to feel confident in the program, but also know that there is an avenue like this to ask questions.”