By Jessica Mathews/News@whmi.com


The Small Business Administration has started approving Paycheck Protection Program or PPP loan forgiveness applications and local businesses are being encouraged to get educated about how to prepare.

Lake Trust Credit Union is headquartered in Brighton and processed more than 200 PPP loans for small businesses, which continue to struggle due to the economic impacts of the COVID-19 pandemic. 60% of the loans were intended to be used for payroll. The remainder could be used for things like mortgage, rent and utilities. Now, the application period for Paycheck Protection Program (PPP) forgiveness is approaching for businesses that took part in the program. Commercial Services Manager Ken Michalak says they were able to help over 240 commercial members. He says there were two rounds of funding issued – the first in April/May and then another in June/July.

Michalak says there has been a lack of clear information available, leading to confusion for many business owners about the application process and timeline for forgiveness. He says depending on what round a business received, they have up to ten months to apply for forgiveness from the date they obtained the funds from their bank or credit union. Michalak tells WHMI it’s really a two-step process – the credit union or financial institution approves the forgiveness once a business applies and then they submit it to the SBA.

Companies that received less than $50,000 are able to fill out a streamlined single-page forgiveness application. Michalak says the portal is user-friendly and businesses will need documentation to show the money was spent as required. Businesses that received larger amounts face a more rigorous process, including an 11-page forgiveness application. More information is available on the U.S. Treasury website. A link is provided.