Since the Small Business Association’s Paycheck Protection Program (PPP) stopped accepting new applications in August 2020, many business owners who received a PPP loan are now asking: what’s next? Now is the time to begin preparing the loan forgiveness application and to remain vigilant on documentation requirements.
While there are still many factors up in the air, many borrowers are eager to begin the forgiveness process. This leads to a few key factors to keep in mind.
- There is no defined deadline for PPP forgiveness loan applications. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the loan’s origination, depending on the borrower’s agreement. Remember, loan payments are deferred only until 10 months after the last day of each borrower’s loan forgiveness covered period.
- Early applications for loan forgiveness are permitted. But, remember that an eight or 24-week cover period still applies.
- Document, document, document. Because there are still uncertainties in the forgiveness process, documentation is critical. Attention to detail and accurate bookkeeping is a necessity.
- Don’t panic. Our team can help to ensure you have the right documentation and information in completing your forgiveness application.