SBA Settles Confusion Over PPP Application Deadlines
The U.S. Small Business Administration (SBA) released guidance last week confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on October 31, 2020. In the SBA’s latest loan forgiveness FAQ document, the SBA explains that 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.
Fears of an October 31, 2020 PPP deadline came to the SBA’s attention because the program’s loan forgiveness application forms (3508, 3508EZ, and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. This prompted the SBA to calm PPP borrowers’ fears of a surprise deadline by issuing a new entry in its loan forgiveness frequently asked questions document answering “Is October 31, 2020, the deadline for borrowers to apply for forgiveness?”
What is the Paycheck Protection Program (PPP)? The PPP is a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This act authorizes the Treasury to use the SBA’s 7(a) small business lending program to fund loans of up to $10 million per borrower that qualifying businesses can spend to cover payroll, mortgage eligible costs.
Talley’s professionals have spent literally hundreds of hours reviewing the law, regulations and FAQs issued on an almost daily basis and we are happy to assist you in the process. We are available to simply answer a quick question or assist in the application and/or forgiveness process.