When is the PPP Loan Forgiveness Application Due?

The PPP loan forgiveness application is due 10 months after the end of your covered period. You can find more information and the application on the SBA website.

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Introduction

The PPP loan forgiveness application is due 10 months after the end of your covered period. You can submit your application early, but keep in mind that you won’t be able to access forgiven funds until your lender has received and approved your application.

If you’re self-employed or have a sole proprietorship, you have the option to apply for loan forgiveness any time before your covered period ends or before the maturity date of your loan, whichever is earlier.

What is the PPP Loan Forgiveness Application?

The PPP loan forgiveness application is the document that you use to apply for forgiveness of your PPP loan. The application is divided into four sections:

Section 1 asks for general information about your business, including contact information, business type, business size, and PPP loan amount.

Section 2 asks for specific information about how you used your PPP loan proceeds. This includes questions about payroll costs, eligible non-payroll costs, and whether you experienced any reductions in employees or salaries/wages.

Section 3 asks for information about your FTE employees during the covered period or alternative covered period. You will need to provide the number of FTE employees for each pay period during this time period.

Section 4 requires certifications from you and your authorized representative. By signing and submitting this application, you are certifying that the information you have provided is accurate to the best of your knowledge and belief and that you understand that false statements or omissions may result in denial of loan forgiveness or prosecution by the U.S. Department of Justice.

When is the PPP Loan Forgiveness Application Due?

The PPP Loan Forgiveness Application is due 10 months after the end of your covered period.

If you received your loan before June 5, 2020, you have the option to use either an 8-week or 24-week covered period. If you received your loan on or after June 5, 2020, you must use the 24-week covered period.

The covered period begins on the date that you received your PPP loan proceeds and ends on the earlier of:
-the date that you spend all of your PPP loan proceeds; or
-24 weeks (168 days) after the date you received your loan proceeds.

How to Prepare for the PPP Loan Forgiveness Application

The PPP loan forgiveness application is due 10 months after the end of your covered period. To prepare for the application, you will need to gather the following documents:

-Your loan forgiveness calculation spreadsheet
-Your PPP loan promissory note
-Documentation to support your loan forgiveness calculation spreadsheet
– documentation may include:
-Canceled checks
– bank statements
– payroll processing reports
– tax forms (e.g., IRS Form 941)
– mortgage, rent and utility bills

Conclusion

The PPP loan forgiveness application is due 10 months after the end of your covered period. You can submit it sooner, but you won’t get any forgiveness until the 10-month mark. There is no extension for the PPP loan forgiveness application, so if you’re not able to submit it on time, you’ll have to repay the loan with interest.