What is the deadline for PPP loan forgiveness?

August 30, 2021
If you got a Paycheck Protection Program loan during the first draw, your deadline for applying for forgiveness is August 30, 2021. The applications for forgiveness are made through your lender or through the PPP Loan Forgiveness Portal opened by the Small Business Administration.

Can I apply for PPP loan forgiveness after 12 weeks?

Yes. A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan, including before the end of the covered period (if the borrower has used all the loan proceeds for which the borrower is requesting forgiveness).

What if I missed the PPP forgiveness deadline?

Missing the deadline will initiate monthly payments with interest. After the deadline, borrowers may still seek forgiveness up until their loan matures, which could be either two or five years.

Can you apply for PPP forgiveness after 10 months?

Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Can I use a 24 week period for PPP loan forgiveness?

Paid or Incurred: Borrowers are generally eligible for forgiveness for the payroll costs paid and payroll costs incurred during the 24-week (168-day) or 8-week (56-day) Covered Period (or Alternative Payroll Covered Period) (“payroll costs”).

Is PPP forgiveness 8 weeks or 24 weeks?

A borrower may select a covered period between 8 weeks and 24 weeks, which commences upon disbursement of the PPP loan proceeds. The flexibility on the part of a borrower to choose a particular covered period within that range was a feature added pursuant to the Economic Aid Act.

What happens if you don’t apply for loan forgiveness?

If you don’t apply for loan forgiveness, your loan payments will be deferred for 10 months after the end of your selected covered period (8 or 24 weeks, depending on your loan) No collateral or personal guarantees are required. The government and lenders are not allowed to charge you any fees for your loan.

Do you have to spend PPP in 8 weeks?

The Paycheck Protection Program Flexibility Act made some significant changes to PPP loans. You now have a choice: If your loan was issued on or before June 5, 2020, you can opt to take advantage of a 24- week period to spend the funds. Borrowers are no longer locked into the eight weeks.

Will PPP loan forgiveness be extended?

Borrowers are able to defer paying back principal and interest on their PPP loans during the deferment period which, prior to the new rule, ended after the SBA issued a decision on the borrower’s loan forgiveness application. New loans under the Program are no longer being advanced as of May 31, 2021.

Can you use 10 weeks for PPP loan forgiveness?

Timing of Application for Forgiveness A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.