PPP Loan Forgiveness
By Marc Derstein, CPA, Shareholder/Managing Partner
As a reminder, if your business received Payroll Protection Program (PPP) funds you will need to apply for forgiveness. Otherwise, the funds will be considered a loan to be paid back.
A borrower must apply for forgiveness within 10 months after the last day of the covered period with the bank that the loan was issued. If the borrowers do not apply for forgiveness within the stated time period, then the PPP loan payments are no longer deferred, and the borrowers will begin making loan payments to their PPP lender.
For example, if you received your PPP funds on April 23, 2020 then your 24-week covered period would end on October 8, 2020. In this case you would have until August 8, 2021 to apply for forgiveness, which would be 10 months after the last day of the covered period.
If your business has not applied for forgiveness yet, we would encourage you to contact your lending institution as soon as possible and inquire about how to start this process.Filed in: Client News