Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
Furthermore, does PPP2 have to be paid back?
6-month deferment (you don’t have to start paying back the loan for 6 months—however, interest still accrues during this period) Note: as of June 5, 2020, payments are deferred until you receive approval from the SBA on your application for loan forgiveness, or 10 months after the end of your covered period.)
People also ask, how long do I have to use PPP2?
How long do I have to spend the PPP2 funds? Borrowers can choose either an 8 or 24-week period as the covered period of expenses from the loan origination date, similar to the first round of PPP loans.
How long do you have to wait between PPP1 and PPP2?
In every PPP loan rule, you have to use your PPP loan funds in at least “eight weeks”, from eight weeks all the way to 24 weeks. So, the SBA following that rule has always said okay so you have at the minimum you can use the PPP funds. PPP1 is eight weeks, so you have to wait eight weeks in order to apply for PPP2.
A borrower may select a covered period between 8 weeks and 24 weeks, which commences upon disbursement of the PPP loan proceeds. The flexibility on the part of a borrower to choose a particular covered period within that range was a feature added pursuant to the Economic Aid Act.
Funds can also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations.
Employees at Time of Forgiveness Application: This is the total number of employees at the time the borrower is applying for loan forgiveness. PPP Loan Disbursement Date: This is the date that borrower received the PPP Loan proceeds from the lender.
FTE: Documentation showing hours paid for each employee to determine (Period chosen at the. election of the borrower):
For example, a borrower whose 24-week covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins.
Unless you qualify to use the EZ or S versions, you must apply with the regular Form 3508. The difference between the forms lies in the calculations you need to do. Form 3508 requires the most calculations, Form 3508EZ requires less calculations, and Form 3508S is nearly calculation-free (cue the celebration).
Womply is a registered loan agent, helping small businesses streamline the application process and connect with verified SBA 7(a) PPP lenders. We aren’t a lender, but we care about helping small businesses stay solvent amid the COVID-19 outbreak.
However, you’ll have to meet at least one of the following three criteria to be eligible to use the 3508EZ form: You are a self-employed individual, an independent contractor, or a sole proprietor who had no employees at the time you applied for a PPP loan.
If you received a PPP loan in 2020, you may be eligible to apply for a second PPP loan if your business suffered a loss in revenue in 2020. … This means, like the first PPP loan, the second round of PPP loans will also be fully forgivable if you follow the forgiveness guidelines.