Based on the timing of the first PPP loans, no PPP borrower has an eminent forgiveness application deadline in 2020. When Is … 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, loan payments are no longer deferred and the borrower must begin making payments on the loan. If you have questions about your PPP Loan Forgiveness Application, call (888) 655-2210 (Toll-Free). “We followed the rules, I expect the loan will be forgiven,” Andreasian said. ATBS is also encouraging owner-operators to take advantage of the extended PPP loan application deadline of Aug. 8, which was signed into law by the President on July 5. We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption. For example, the SBA wrote, a borrower with a covered period that ends Oct. 30, 2020, has until Aug. 30, 2021, to apply for forgiveness before loan repayment begins. Please note that October 31, 2020 is not the deadline to apply.. Clarification was also released around the PPP loan forgiveness application deadline: you can breathe a sigh of relief because loans are not due on October 31, 2020 as many feared. That meant borrowers had eight weeks to make eligible payments with their loans. ATBS is also encouraging owner-operators to take advantage of the extended PPP loan application deadline of Aug. 8, which was signed into law by the President on July 5. The program stopped accepting applications on Aug. 8 with almost $134 billion of congressionally approved funds remaining unspent. Instructions for Borrowers for PPP Loan Forgiveness Application Checklist of Documentation Required for PPP Loan Forgiveness For PPP Loans between $50,000 and $150,000 But others noted nothing in the statute or other SBA guidance suggested that such a short deadline applied to the request for forgiveness. The loan application period closed on August 8, 2020. October 14, 2020 by Ed Zollars, CPA. In its answer, found in Q&A No. 116-136, which was signed into law March 27. Some are essential to make our site work; others help us improve the user experience. Tax; Update to PPP Loan Forgiveness Rules, New Application Deadline ; Update to PPP Loan Forgiveness Rules, New Application Deadline. Sadly, components of the PPP Loan Forgiveness Application are unorganized and confusing. PPP borrowers can qualify to have the loans forgiven if the proceeds are used to pay certain eligible costs. The date on all three loan forgiveness forms has now been changed to November 30, 2020. 1 Explosion Nashville; 2 Rush Limbaugh; 3 Wonder Woman 1984; 4 Heisman Finalists 2020; 5 Donate Car; 6 Playboi Carti; 7 Nano Hearing Aids; 8 2021 Rav4; 9 Kendall Jenner; 10 Where Is Santa; Top Searches Holiday Gifts. This can make qualifying to keep 100% of your paycheck protection money almost impossible – unless you get a little help. The U.S. Small Business Administration (SBA) released guidance Tuesday confirming that Paycheck Protection Program (PPP) loan forgiveness applications are not due on Oct. 31. Currently, there's north of $100 billion left in the program's coffers. The SBA and Treasury released late Friday evening the long-awaited application to apply for forgiveness of a Paycheck Protection Program (PPP) loan. However, the form indicates that it expires 10/31/2020. In addition, the loan forgiveness application has not been updated to reflect the recent five-week extension of the program’s deadline to Aug. 8. Most companies are in that window now, but for those who received loans in late summer, the forgiveness deadline could extend into late 2021. The expiration date in the upper-right corner of the posted PPP loan forgiveness application forms is displayed for purposes of SBA’s compliance with the Paperwork Reduction Act, and reflects the temporary expiration date for approved … This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process. Purpose. The purpose of this article is to provide updated guidance issued by the U.S. Small Business Administration (the “SBA”) via the instructions for the PPP Loan Forgiveness Application (SBA Form 3508) issued May 15, 2020 and revised June 16, 2020 (the “3508 Application”) and its interim final rule issued Friday, June 26, 2020 (the “6/26 IFR”) to address these questions. If you have a loan of $50,000 or less, and you and your affiliates have combined loans of less than $2 million, consider using Form 3508S. Under requirements set by the Small Business Administration, businesses have 10 months after the end of their PPP loan’s covered period to complete their loan forgiveness application. 1. Paycheck Protection Program Loan Forgiveness Application. On October 8, 2020, the SBA and U.S. Treasury announced simplified forgiveness for PPP loans of $50,000 or less. When is Your PPP Loan Forgiveness Application Actually Due? The new FAQ clarifies when loan forgiveness applications are due. At that point, the lender has 60 days to send a decision and a request for payment to the Small Business Administration. Lenders are required to electronically upload the initial SBA Form 1502 reporting information by the later of: (1) May 29, 2020, or (2) 10 calendar days after disbursement or cancellation of the PPP loan, according to an interim final rule published May 20. The PPP Flexibility Act of 2020 extends the time companies have to spend loan funds and still qualify for forgiveness. The law also drops the required payroll expenditure amount from 75% to 60%. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. Effective Nov 30, 2020. Many banks have begun accepting applications for loan forgiveness now that the deadline to apply for a PPP loan (August 8, 2020) has passed. Is October 31, 2020, the deadline for borrowers to apply for forgiveness? Select to receive all alerts or just ones for the topic(s) that interest you most. Note: The SBA has issued updated guidance since this article was published. [1] Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, SBA website, October 13, 2020, https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf (retrieved October 14, 2020), [2] Paycheck Protection Program Frequently Asked Questions (FAQs) on PPP Loan Forgiveness, SBA website, General Loan Forgiveness FAQs, Q&A 4, p. 2, Copyright © 2019 Kaplan, Inc. All Rights Reserved, Deadline to Apply for Forgiveness of PPP Loan is Loan Maturity Date, Not October 31, 2020, https://www.sba.gov/sites/default/files/2020-10/PPP%20--%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29.pdf. PPP loans are available for the lesser of $10 million or 2.5 times your average monthly payroll. The legislation authorized 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 could spend to cover payroll, mortgage interest, rent, and utilities. The loan portion that isn't forgiven carries a 1% interest rate and five-year term. However, due to the recency of this announcement, our forgiveness portal has not yet been updated to include this simplified application … If you submit your forgiveness application within that 10-month deadline, you will not be required to make loan payments until your application is processed (if you receive 100% forgiveness, you’ll never need to make loan payments.) The Paycheck Protection Program opened up for applications to most businesses on April 3 and for self-employed individuals on April 10. Ever since the first Form 3508 was released, the forms have shown an expiration date in the upper right corner of October 31, 2020. Download the updated PPP Forgiveness Timeline infographic.To receive the latest information on the PPP, including any new funding or changes to the program, subscribe to our newsletter. But that does not mean a borrower should submit a … Because Mary received both the PPP and the EIDL grant, she will enter the amount of $1,000 in the top section of Form 3508EZ, and her PPP loan-forgiveness … Is October 31, 2020 the deadline for borrowers to apply for forgiveness? Thus, even if a borrower fails to apply by the date ten months after the end of their covered period and begin to make payments on the PPP loan, the borrower can still apply for forgiveness of the original PPP loan amount. The SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders on October 2, 2020. 4 in the General Loan Forgiveness FAQs section, 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. Currently, there's north of $100 billion left in the program's coffers. QUESTION: I’m really confused on the Payroll Protection Program (PPP) loan forgiveness application deadline. The business completes the PPP loan forgiveness application and gives it to the lender along with any required documentation. And there are some banks that won’t be announcing their forgiveness process until late August or early September. Others have sold their entire PPP loan portfolio to special purpose loan servicers, and those servicers will now be making forgiveness determinations. Be the first to know when the JofA publishes breaking news about tax, financial reporting, auditing, or other topics. AICPA experts discuss the latest on the PPP and other small business aid programs during a biweekly virtual town hall. PPP loans are eligible for full or partial forgiveness if the loan proceeds are used in accordance with forgiveness rules and guidelines, which have already been modified several times. The rules and guidelines for calculating PPP loan forgiveness are changing quickly and often unpredictably. The PPP loan program restarted, following the appropriation of new funding on Friday, April 24, 2020. But the SBA also reminds borrowers that loan payments are deferred only until 10 months after the last day of each borrower’s loan forgiveness covered period. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. The issue came into sharper focus when the SBA released the Form 3508S in October with that very same expiration date. The issue came into sharper focus when the SBA released the streamlined PPP Loan Forgiveness Application Form 3508S in October with that very same expiration date (see related post). You can take advantage of the extended covered period. It will also make it easier for many current PPP borrowers – especially with loans of $150,000 or less – to request Forgiveness. Extended Coverage; Deadline for Forgiveness Application: The covered period of PPP loans was extended, so there is no need for a borrower to rush the loan forgiveness application process. — Jeff Drew (Jeff.Drew@aicpa-cima.com) is a JofA senior editor. This is the first time it appears the SBA has directly provided a specific deadline for applying for forgiveness, allowing borrowers to apply up until the maturity date of their PPP loan. For businesses with lower staffing levels than pre-Covid, you are best waiting until January 2021 to apply for PPP loan forgiveness. The deadline … Some concerns had been raised regarding the expiration date found on the various Forms 3508 to be used to apply for forgiveness under the PPP loan program. Forgiveness Tool PAYCHECK PROTECTION PROGRAM (“PPP”) LOAN FORGIVENESS CENTRAL BUSINESS RULES Extends the deadline to use a PPP loan to December 31, 2020, from June 30, 2020. June 5, 2020 * ALERT – The new deadline to apply for a Paycheck Protection Program Loan is August 8. Hopefully, this information will … Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. The SBA updated its forgiveness FAQ[1] to address this concern, adding Question 4 on page 2 of the FAQ: 4. Lenders who worked excessive hours to help small businesses access Paycheck Protection Program (PPP) loans are now scrambling … Can you explain this difference? Some banks have been accepting forgiveness applications since July 2. If the PPP loan is ultimately forgiven, then escrow money is returned to the borrower. President Trump signed a bill extending the deadline … Top Searches Holiday Gifts. SBA may direct a lender to disapprove the Borrower’s loan forgiveness application if SBA determines that the Borrower was ineligible for the PPP loan. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. For example, a borrower whose covered period ends on October 30, 2020 has until August 30, 2021 to apply for forgiveness before loan repayment begins. Clarification on PPP Forgiveness Application Deadline. This date will be extended, and when approved, the same forms with the new expiration date will be posted.[2]. Many businesses applying for loan forgiveness were shocked when they saw an October 31st deadline listed on the upper right corner of their application forms. Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. Originally, the Paycheck Protection Program covered period was eight weeks. The new FAQ clarifies when loan forgiveness applications are due. Applications submitted after that 10-month period will require the borrower to begin paying the principal and interest. By Office of Capital Access. However, the loan repayment deferral period says that you have until one of the following (whichever is earlier) to start paying back the loan: The webcasts, which provide CPE credit, are free to AICPA members. Sale of 50% or more of the PPP borrower’s assets: SBA approval is not required where the company is selling 50% or more of its assets if the PPP borrower completes a forgiveness application and sets up an escrow account with the PPP lender which is funded with enough money to repay the PPP loan. The Paycheck Protection Program (PPP) was designed to be a lifeline for the businesses caught in the waves of the COVID-19 pandemic. Borrowers must submit a forgiveness application within 10 months of exhausting the loan funds and by Dec. 31. The PPP loan forgiveness application is available from the SBA, but as you can see from the above examples, there is no rush in submitting one.If you received your loan from Celtic Bank through BlueVine, this form is digitized so there is no need to download from the SBA. Question from San Diego, California subscriber. 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