|Have you submitted your First Draw Paycheck Protection Program (PPP) loan forgiveness application? Borrowers can apply for loan forgiveness once all loan proceeds have been used, any time up to the maturity date of the loan. However, if forgiveness applications are not submitted within ten months following the last day of the covered period, borrowers will be required to begin making loan payments to their PPP lender. |
Patience during the entire PPP process has been rewarded due to the many changes the program has incurred. Most companies will soon be coming to the end of their ten-month period and unless a further grace period is provided, will need to file for forgiveness to avoid having to begin making loan payments. Of the 11.8 million PPP loans issued, 8.3 million (71%) of forgiveness applications have yet to be submitted according to the American Institute of Certified Public Accountants as of May 24, 2021. Due to the high volume of forgiveness applications likely to be submitted over the next few months, borrowers may experience delayed processing times as lenders and the SBA will be extremely busy.
For more information about the PPP loan forgiveness process, please click here .
Submitted by: Jeremy Fortner and Amy McGhinnis
Source: Small Business Administration and American Institute of Certified Public Accountants