When is the Deadline for PPP Loan Forgiveness?
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The deadline for PPP loan forgiveness is December 31, 2020. Borrowers can apply for forgiveness any time after they have used all of their loan proceeds for eligible expenses.
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The PPP Loan Forgiveness Application
What You Need to Know About the PPP Loan Forgiveness Application
The Paycheck Protection Program (PPP) loan forgiveness application is now available. Borrowers can apply for forgiveness of their PPP loans through the Small Business Administration (SBA) Form 3508 or lender approved equivalent.
The deadline to apply for forgiveness is the later of 10 months after the end of your covered period or December 31, 2020. If you do not apply for loan forgiveness by this deadline, you will have to begin making payments on your loan.
To be eligible for forgiveness, you must use the loan proceeds for eligible expenses in accordance with the PPP Loans Forgiveness Interim Final Rule and meet all other requirements.
If you have questions about the PPP loan forgiveness process or need help completing your application, please contact your lender directly.
The PPP Loan Forgiveness Application Form
The PPP Loan Forgiveness Application is the form that borrowers will use to apply for forgiveness of their PPP loans with their lender.
The form and instructions were released by the Small Business Administration (SBA) on May 15, 2020.
Borrowers have to submit the completed application to their lender. Lenders then have 60 days to review and approve the application.
The deadline to apply for forgiveness is 10 months after the end of the borrower’s loan forgiveness covered period.
How to Calculate Your PPP Loan Forgiveness Amount
The Paycheck Protection Program (PPP) loan forgiveness application deadline is fast approaching. If you received a PPP loan, you may be wondering how to calculate your PPP loan forgiveness amount. The SBA released a PPP loan forgiveness application Form 3508 and instructions on how to fill out the form. The form includes a PPP Loan Forgiveness Calculation Worksheet that you can use to calculate your loan forgiveness amount.
How to Calculate Your PPP Loan Forgiveness amount
You can calculate your PPP loan forgiveness amount by using the SBA’s Loan Forgiveness Calculator. This will help you determine how much of your loan may be forgiven.
To use the calculator, you will need:
-Your loan amount
-Your interest rate
-The number of full-time equivalent (FTE) employees you had during the covered period
-The average annual salary or hourly wage for each FTE employee
-The total eligible costs you incurred during the covered period
The SBA’s Loan Forgiveness Calculator can be found here:
[LINK]
What expenses are eligible for PPP loan forgiveness?
To be eligible for forgiveness, all PPP loan proceeds must be used for eligible expenses within the 8- to 24-week covered period. The following are examples of eligible expenses:
-Payroll costs, including employee salary, wages, commissions, ortips (capped at $100,000 on an annualized basis per employee)
-Payment of vacation, parental, sick, medical or other paid leave
-Allowance for separation or dismissal pay
-Payments of health care benefits, including insurance premiums
-Retirement benefits payments
-Mortgage interest payments (but not principal payments)
-Rent payments under a lease agreement in force before February 15, 2020
-Utility payments
What to Do If You Can’t Get PPP Loan Forgiveness
If you’re not eligible for PPP loan forgiveness, you have a few options. You can negotiate with your lender to extend your loan term or make smaller payments. You can also look into SBA disaster assistance loans. Get more information on what to do if you can’t get PPP loan forgiveness.
What to Do If You Can’t Get PPP Loan Forgiveness
If you don’t think you’ll be able to get your PPP loan forgiven, there are a few options available to you. You can either choose to defer your loan payments or try to negotiate a loan modification with your lender.
If you decide to defer your loan payments, you’ll need to contact your lender and let them know. They may be able to work with you to temporarily stop making payments or to lower your payment amount. Keep in mind that interest will continue to accrue on your loan during this time.
If you’re having trouble making your loan payments, you may also want to try negotiating a loan modification with your lender. This could involve lowering your interest rate, extending the term of your loan, or changing the type of loan you have. Again, keep in mind that interest will continue to accrue on your loan during this time.
If neither of these options is possible or desirable for you, then you may have no choice but to default on your loan. This will damage your credit score and make it harder for you to get future loans, but it may be necessary if you’re unable to make your payments.
How to appeal a PPP loan forgiveness decision
If you’ve applied for PPP loan forgiveness and been denied, don’t despair. You have the right to appeal the decision.
The first step is to reach out to your lender and ask for a copy of the decision letter. The letter should explain why your loan was not forgiven and what you can do to appeal the decision.
Once you have the letter, you’ll need to gather supporting documentation to submit with your appeal. This could include payroll records, tax forms, bank statements, and other documentation showing that you used the loan funds for eligible expenses.
Once you have all of your documentation together, reach out to your lender again and request a meeting or phone call to discuss your appeal. Be prepared to present your case and answer any questions they may have.
If you’re still not satisfied with the outcome, you can file a complaint with the Small Business Administration office that handles appeals for PPP loans.
