Womply PPP Loan Forgiveness – Update 5/28/21
If you got your PPP loan via Womply in 2021 you may wonder how to apply for PPP loan forgiveness. In this 5/28/21 update, we share our recommendation for your Womply PPP loan forgiveness strategy.
This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
One of the most common questions we get here in our office is that “I got my PPP be a Womply, but now how do I apply for forgiveness?” That’s what we’re going to talk about in this video. Hello from Freedom Tax Accounting we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. We are recording this video on May 28 2021 and we always emphasize the date on any recording we do relating to the PPP program because the PPP program has been constantly changing, so there may be things that we discuss in this video that can change as soon as tomorrow. So, that’s the importance of subscribing to our channel that way you’re always up to date with the most current and accurate information relating to these SBA loans okay.
Now we are in May 28th and uh the PPP program is set to end or the SBA will not accept any new applications starting May 31st, but many of you that have received the PPP loan program via Womply and most of you got that PPP via Womply in the beginning of this year 2021. You already got the funds and now the most common questions we get in our office is, “Okay I got my PPP funds through Womply now what do I do to apply for forgiveness?”
Okay now there are certain things that you need to know:
Womply is not a bank. Womply did not give you the PPP. You don’t have a PPP loan with Womply. Womply is a third-party provider that found you a bank okay. So, your PPP loan is not with Womply. Womply developed a platform to find you a bank to give you the PPP loan. Another important note is that that you don’t apply for forgiveness with the SBA okay. Even though the PPP program is an SBA program the PPP is an SBA program that the SBA channeled through banks okay. So, there’s a bank that gave you the funds. And a lot of people who applied through Womply don’t even know what bank gave them the loan.
So, how do you find out what bank gave you the loan that you applied through Womply? So, it’s very easy you just have to go and look at your note okay. This is the PPP note that you signed to get the PPP loan approved. Remember when you applied through Womply you do, you did the application in Womply one please send you a DocuSign with the PPP application you signed it then the one please send that PPP application to the SBA, the SBA approves it, the SBA sends Womply a note which is this document, then Womply sends you this note for you to sign. So, if you got a PPP via Womply, you had to have had assigned this document called the note basically it’s a document that has your SBA loan number it has the SBA loan number name basically it has your name. The date that the note was given. This is your PPP loan amount. Borrower it says your name. Now lender here, where it says lender, this is the bank that gave you the PPP funds okay. So, this is very important that if you got a PPP through Womply that you take a look at this document, so you know what bank gave you the loan. This is an example of one of our clients but there are a lot of different banks okay. So, you have to take a look at your note and see what lender or what bank gave you the PPP funds.
Now that you know the bank that gave you the PPP through Womply what do you need to do for forgiveness? Well for most of you for now you have to wait. Okay remember Womply started doing this PPP application starting this year okay and usually and once again every bank has different PPP forgiveness structures and processes okay. Now usually when a bank gives you a PPP loan, they usually send you a link to apply for forgiveness via email. Now we still don’t know if that forgiveness link is going to come from Womply or if it’s going to come from the bank that gave you the PPP. And it’s still too early to know why. And this is based on what happened last year, usually when a bank gives you the PPP loan, they usually don’t send you the PPP forgiveness link after 8 to 12 weeks after they’ve given you the funds. So, for most of you for now, we have to wait.
Now what are we recommending to our clients that applied for the PPP via Womply? Okay now look at the date you got the funds okay if 12 weeks go by, basically three months if three months go by and you have not received an email from Womply or from the bank that gave you the PPP loan then our recommendation is that you start communicating with the bank that gave you the loan not Womply. Because if you have seen Womply has terrible customer service; you cannot reach anyone over there. So, legally under the SBA you have a contract and you have a loan with the bank not with Womply. So, once again our recommendation is, look at the date you got the PPP loan if you apply through Womply. If three months go by and you haven’t heard anything either from Womply or the bank, start communicating with the bank that gave you the PPP loan. And once again, how do you know what bank gave you the loan? You need to take a look at the PPP note that you signed to get the SBA PPP loan. And down here it says lender whatever bank name is here, this is the bank that you will need to start communicating with for PPP forgiveness.
Now for all of you that got the PPP recently, there’s no reason to panic for forgiveness. There’s a lot of time for you to apply for forgiveness. Remember that once you get the funds you have 24 weeks of covered period, and then you have an additional 10 months after your initial cover period to apply for the PPP forgiveness before the bank starts making you make your monthly payments on your loan. So, you have almost 16 months to apply for forgiveness before the bank that gave you the PPP loan, starts making you make your monthly payments okay.
So, for now everyone just wait and once again wait three months, if you haven’t heard anything back either from Womply or your bank for the PPP forgiveness, then start reaching out to the bank or a lender that gave you the PPP funds. And they may have different processes. Some banks May send you a link. Some banks May tell you go to our website some banks may even tell you have to send everything by mail or you have to go to the bank itself. So, for now we just have to wait but don’t worry because you still have a lot of time to apply for PPP forgiveness okay. So, thank you for watching this video. I hope it has been of value to you and your business if it has share it with other business owners. Remember to subscribe to our channel, like this video and have a good Memorial Day weekend. God bless you everyone, take care, bye.