ppp loan forgiveness application due date

• Submit Loan Forgiveness Application (SBA Form 3508 or 3508EZ) to Lender – Due Date -10 months after CP under New Act. Unlike personal tax returns, filing S Corp taxes requires a degree of expertise that not all accountants will have, and it involves... New Legislation and statistics give hope that we will return to business as usual in the not-so-distant future. By Office of Capital Access. However, borrowers that meet one of three criteria can use the much simpler PPP Loan Forgiveness Application Form 3508EZ: The due date is not October 31, however applicants may submit before that. Total of 5 months. 297 0 obj <> endobj You will need to fill out a PPP Loan Forgiveness Application form and submit that to your lender. You can find the most up-to-date information here . You should consult your own legal, tax or accounting advisors before engaging in any transaction. The period ended (or will end) after 8 weeks or 24 weeks. Overview. Lots of business owners started freaking out this month because at the top of the PPP loan forgiveness applications, there is an “expiration date” of 10/31/2020. 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. 327 0 obj <>stream The application consists of: * The PPP Loan Forgiveness Calculation Form; * PPP Schedule A; * The PPP Schedule A Worksheet; and * The (optional) PPP Borrower Demographic Information Form. 10 Things We Learned from the PPP Forgiveness Application 3. Borrowers can submit their forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination. 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. On October 8, 2020, the SBA posted an alternative PPP Loan Forgiveness Application Form 3508S (“SBA Form 3508S”) for borrowers with a PPP loan of … 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. It released a third PPP Loan Forgiveness application for those who received $50,000 or less in loan proceeds. For loans made on or after June 5, 2020, your loan forgiveness covered period is 24 weeks. To be eligible to use the EZ application you must meet certain requirements (we’ll go over those next). First, the loan forgiveness applications provide that the FTE and salary/wages safe harbor date (i.e. The SBA has apparently been receiving many inquiries regarding the due date. As discussed in our June 4, 2020, Client Alert on the Paycheck Protection Program Flexibility Act of 2020 (PPPFA), the PPPFA amended several key provisions of the Paycheck Protection Program (PPP), but one item that did not change is the application deadline.This means all PPP applications are due by June 30, 2020. With so much uncertainty about the actual deadline, the Small Business Administration (SBA) released extra guidance to ensure business owners had the right deadline dates expected to submit their loan forgiveness applications. The funds can be used to pay any eligible expenses incurred during the period beginning on the date the lender makes the first disbursement of the PPP loan to the borrower. The funds can be used to pay any eligible expenses incurred during the period beginning on the date the lender makes the first disbursement of the PPP loan to the borrower. If you had a PPP loan prior to the Paycheck Protection Program Flexibility Act being signed, you can choose to use the original 8-week period instead of the 24-week period. Borrowers can begin applying for loan forgiveness eight weeks from the date they receive the loan proceeds. PPP Loan Forgiveness Calculation Form. X Co. borrowed a $100,000 PPP loan on April 10, 2020. The Small Business Administration (SBA) released guidance on October 13, 2020 that confirms PPP loan forgiveness applications are not due on October 31 – and explains what probably caused the confusion. Concerns had arisen among many PPP borrowers because the program’s loan forgiveness application forms (3508, 3508EZ and 3508S) show an expiration date of “10/31/2020” in the upper-right corner. After much confusion surrounding the actual due date, the SBA released this guidance to all who are in the process of submitting for loan forgiveness. By Office of Capital Access. 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. Is October 31, 2020 the deadline for borrowers to apply for forgiveness?" Listed under FAQs, businesses will see that the SBA explains “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.” Within this newly added guidance, 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.” This was a relief to small businesses that began rushing to complete their applications, believing they needed to be submitted by the end of October 2020. All versions. When is the loan forgiveness application due? The SBA has released the “Paycheck Protection Program Loan Forgiveness Application”[1] that contains information on the PPP forgiveness program. 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 amount will … Updated 11-30-20 with new expiration date. Related programs: PPP. X Co. incurred $100,000 of costs eligible for forgiveness over the next 8 weeks. SBA Releases PPP Loan Forgiveness Application and Instructions for Borrowers – May 18, 2020 by Adam Hill. If you are certain a portion of your PPP loan will be unforgiven and want to conserve cash flow. Version 6|Effective: 2020-11-30.Download pdf; PPP Loan Forgiveness Calculation Form. The Borrower is a self-employed individual, independent contractor, or sole proprietor who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form (SBA Form 2483). The Treasury Department and Small Business Administration are responsible for updating the application form and instructions for loan forgiveness. On October 8, 2020, the SBA posted an alternative PPP Loan Forgiveness Application Form 3508S (“SBA Form 3508S”) for borrowers with a PPP loan of … PPP Loan Applications Due by June 30, 2020. Many took this to mean that the application was due on 10/31 because, well, that’s kind of what it says, right? The loan application process closed Aug. 8, 2020, but you can learn how to maximize PPP loan forgiveness. "When you submit your application for forgiveness, that will go directly through the lender that you originally received the PPP loan through and then they will work with the SBA on the forgiveness process." PPP Loan Forgiveness Calculation Form. Effective Nov 30, 2020. The rules surrounding PPP loan forgiveness have continued to evolve since the program was first rolled out. Although your loan document may state that your first payments are due in six months, the PPP Flexibility Act signed on June 5, 2020 revised the law so that payments are not due on your PPP loan until forgiveness has been determined. Applications for PPP loan forgiveness are due within 10 months after the last day of your Covered Period. If you have the same number or more, Safe Harbor will apply. h�bbd``b`z$g��@ �6���I ��`��>�;a"�AD$H�2��_$jf2012� ��%�3��` �, When is my PPP loan forgiveness application due? All versions. Given that PPP applications opened on April 3, that means the very earliest borrowers could apply would be May 29 – assuming the loans were approved and funded the same day. the date where you have to demonstrate that you have restored FTEs or salary/wages to prove you meet the applicable safe harbor) is the earlier of December 31, 2020 or the date you submit your loan forgiveness application. Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner. When is the loan forgiveness application due? "It is important to remember that the PPP loans are going directly through lenders, not directly through the SBA," Clendenning said. As COVID-19 brought many shutdowns throughout cities in the US, many businesses were struck with a struggle to stay open, follow strict guidelines, or shut down and let go of their staff. – Submit the PPP Loan Forgiveness Calculation Form – Submit PPP Schedule A and Substantiation – Lender has 60 days to review and make a decision; SBA has another 90 days after that. Those who are ready to apply for PPP loan forgiveness must do so through their lender. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. Hopefully, this information will help prop up the bottom line for a … While the forms have an expiration date of October 31, 2020 displayed in the upper-right corner, you can still use the forms. If you apply for forgiveness after using all your PPP funds on September 15th, 2020 (whether your covered period is over or not), for the purpose of Safe Harbor, you will compare the number of FTEs you had on the most recent payroll to those you had on payroll on February 15, 2020. 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. EZ Loan Forgiveness Application: The simplified two page loan application makes applying for loan forgiveness easier. The SBA has stated that it intends to provide a new Loan Forgiveness Application and new guidance that are updated in accordance with the new PPP Flexibility Act. 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 amount will … The due date is not October 31, however applicants may submit before that. Download .pdf. 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