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PPP Loan Forgiveness Deadlines are Approaching
A borrower can apply for forgiveness at any time once the loan proceeds have been used up, but must do so before the maturity date of the loan.
Borrowers have until 10 months after the last day of the covered period to apply for forgiveness with their lender. The covered period is either 8 weeks or 24 weeks after the date you received your funds, depending upon the timing of your loan application and which covered period you elect.
If you received your loan on May 5, 2020, for example the following dates are significant:
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Loan Date
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Number of Days in Covered Period
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End of Covered Period
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Deadline for Applying - 10 Months *
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5-May-20
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56
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30-Jun-20
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4/30/2021
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5-May-20
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168
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20-Oct-20
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8/20/2021
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*You can use this formula in Excel to add 10 months to a given calendar date =EDATE(start date, number of months)
Once you apply for forgiveness, your lender has 60 days to evaluate the application before sending it on to the SBA who has an additional 90 days to make their decision.
Check with your lender on details of the application process and supporting documentation required.
There are three different forgiveness application forms:
- If your loan was less than $150,000 you can use form 3508S
- If your loan was 150,000 or greater, if you did not reduce your FTW headcount by more than 25% from January 1, 2020 you can use form 3508EZ
- Otherwise, you must complete the long form 3508
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