If you got a Paycheck Protection Program loan during the first draw, your deadline for applying for forgiveness is August 30, 2021. The a...
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.
First PPP Loan Forgiveness Deadline is August 30, 2021
If you obtained a PPP loan, your covered period starts on the day the loan money was deposited. The covered period length could be from 8 to 24 weeks. The covered period would have been specified on your loan documents.
Your deadline for submitting a PPP loan forgiveness application ends 10 months after your covered period ends.
The common ending date for the covered period for the first round PPP loan draws was October 30, 2020. Count forward ten months and that’s August 30, 2021.
Second Stimulus Bill
The second round of PPP loan monies came from the second stimulus bill, which passed December 27, 2020.
If you obtained a PPP loan in the second draw, the timeline for submitting PPP loan forgiveness applications remains the same.
Know your covered period, which will be from 8 to 24 weeks. The deadline for submitting a forgiveness application is 10 months after your covered period ends.
Forgiveness Applications Through Your Lender
You can submit a forgiveness application any time after your covered period ends. You don’t have to wait the ten months.
There are three type of application forms:
- Form 3508S – Used when the PPP loan amount was less than $150,000.
- Form 3508EZ – Used when your headcount of employees didn’t lessen by more than 25%. Also used if you couldn’t regain your original staffing levels due to Covid-related health guidelines.
- Form 3508 – You are operating at the same capacity.
Check with your lender for more details.
Image: Depositphotos
This article, "First PPP Loan Forgiveness Application Deadline Looms" was first published on Small Business Trends
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