Updated: Oct 28, 2020
This post is updated frequently with the latest news about PPP Loan Forgiveness.
SBA FAQs About Loan Forgiveness
When Should I Apply For Forgiveness
As long as a borrower submits its loan forgiveness application within ten months of the completion of the Covered Period, the borrower is not required to make any payments until the forgiveness amount is remitted to the lender by SBA. If the loan is fully forgiven, the borrower is not responsible for any payments.
The Covered Period is either:
the 24-week (168-day) period beginning on the PPP loan disbursement date, or
if the borrower received its PPP loan before June 5, 2020, the borrower may elect to use an eight-week (56-day) Covered Period.
In no event may the Covered Period extend beyond December 31, 2020.
For example, if the borrower is using a 24-week Covered Period and received its PPP loan proceeds on Monday, April 20, the first day of the Covered Period is April 20 and the last day of the Covered Period is Sunday, October 4.