If you have received a Paycheck Protection Program (PPP) Loan and have not yet submitted your application for forgiveness, your deadline may soon be approaching. The deadline to submit a PPP Forgiveness Application with your lender is 10 months after the last day of the borrower’s covered period. If you have not applied for forgiveness by this 10-month point, then your PPP loan payments are no longer deferred, and you must begin making loan payments to your lender.
As each loan is different, you must calculate your deadline based on your situation and what you elected to use as a covered period. For example, a borrower who received a PPP loan on April 15, 2020 and had its 24-week covered period end September 29, 2020, would have a deadline of July 29, 2021 to submit the PPP Forgiveness Application. If the same borrower elected a shorter covered period of only 12 weeks, the covered period would end July 7, 2020 and the forgiveness application would be due May 7, 2021. The covered period begins on the date the loan was originally disbursed and ends on a date selected by the borrower that is at least eight weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.
If you need assistance with your forgiveness calculation or have any questions regarding your PPP Loan, please reach out to your Smith Leonard professional. We can provide guidance as to what expenditures qualify for loan forgiveness, answer questions regarding the forgiveness process, and assist borrowers with supporting documentation and the calculations required for the PPP Loan Forgiveness Application.