When the Small Business Administration (SBA) rolled out the PPP, it excluded many home builders and multifamily housing operations from the program on the grounds that they were "speculative" or "passive" businesses. NAHB sued and won, securing an injunction requiring the SBA to forgive PPP loans issued to NAHB members. This panel discussion will review the PPP program, the litigation and NAHB members' entitlement to reimbursement.
The process to receive a refund on your PPP loan is outlined on the SBA website. SBA has launched a streamlined application portal for borrowers with loans of $150,000 or less. Borrowers who need assistance or have questions should call 877-552-2692, Monday–Friday, 8 a.m.-8 p.m. ET.
Loans to HBAs can be forgiven as well, thanks to NAHB's efforts in working with Congress to include 501(c)(6) organizations as being eligible to receive PPP funding. Just as with any other business that received PPP loans, these loans can be forgiven if used for payroll, rent/mortgage, utilities and other qualifying expenses.
Some key points to note on the PPP loan forgiveness:
- Yes, your loans can be forgiven in full if the funds were spent on qualifying expenses such as payroll, rent/mortgage and utilities.
- You either apply to SBA directly or work with your lender to obtain PPP loan forgiveness.
- If your loan is less than $150,000, generally speaking, you go through the portal. If your loan is greater than $150,000, work with your lender directly.