Is October 31, 2020 the deadline to apply for PPP Loan Forgiveness?
The top right corner of the PPP Loan Forgiveness Applications is misleading.
The document lists October 31, 2020 as the "Expiration Date". Many borrowers are led to believe the application is due October 31, 2020.
Well, the good news is there is no need to worry and rush to get this submitted by the end of October 2020.
Recipients of PPP Loans can apply for forgiveness within 10 months after the final day of the loan forgiveness covered period.
If a small business' loan forgiveness covered period ends on December 30, 2020, they will have until October 30, 2021 to submit their forgiveness application.
If an application is not submitted within the 10-month window, then the borrower will have to begin making payments on the loan. No deferrals, no exceptions.
The October 31 date was listed on the application as an "Expiration Date" for the Small Business Association's (SBA) use in complying with the Paperwork Reduction Act.
So, no applications are due October 31. The next step is to determine when the loan forgiveness covered period ends.
We will cover this topic separately.
Questions? Comment below!