The Small Business Administration (SBA) in consultation with Treasury issued a new Frequently Asked Question regarding the Paycheck Protection Program loan forgiveness application timeline.
SBA clarified that a borrower may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from the origination of the loan. However, if a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, borrower must begin making payments on the loan.
Questions have arisen due to the PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) displaying an “expiration date” of 10/31/2020. That expiration date is displayed for purposes of the SBA’s compliance with the Paperwork Reduction Act, and will be extended.
The new FAQ can be found here (see question #4).
A printable version of this information can be found by clicking HERE.
Authors: Mark Brasee