When is the Deadline for the PPP Loan Forgiveness Application?

BUSINESS CORONAVIRUS

We’ve recently received questions about the deadline to apply for PPP loan forgiveness and want to provide further clarification on this.

Please note that October 31, 2020 is not the deadline to apply.

Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. Is October 31, 2020 the deadline for borrowers to apply for forgiveness?

Answer: No. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.

The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved use of the forms. This date will be extended, and when approved, the same forms with the new expiration date will be posted.

Learn more about how the loan forgiveness process works and how to apply. Still have questions? We’re happy to help. To speak with one of our team members directly, you can reach us at ppploans@fourthcapital.com or 615-298-8000.

 

 1 month ago by Fourth Capital

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