Paycheck Protection Program and Loan Forgiveness
The U.S. Small Business Administration began accepting loan forgiveness applications August 10, 2020 for businesses that received Paycheck Protection Program (PPP) loans.
Loan forgiveness applications are due 10 months after completing the covered period (8- or 24-weeks from receipt of PPP funds). For example, if you received PPP funds on April 20, 2020, your covered period, if you elected the recommended 24 weeks, would be for 168 days, ending on October 4, 2020. After the 168 days, your company would have 10 months to submit an application, giving you a loan forgiveness application due date of August 4, 2021. If the forgiveness application is not submitted, repayments would begin thereafter; so there is plenty of time remaining before repayment is due.
Many businesses are waiting to submit for forgiveness for many reasons but are primarily waiting for an easier process and/or hoping for regulation changes granting automatic forgiveness. For more information on those businesses waiting to submit, click here.