PPP Odds and Ends
The past few weeks has seen a flurry of PPP news. We wanted to make sure you didn’t miss out on some of the more important developments:
PPP Loan Application Deadline Extended
June 20, 2020 was the original deadline for your PPP application. With $130 Billion still left in the program, the government extended the PPP loan application deadline to August 8, 2020. If you have not applied for the PPP loan, you still have time. We can introduce you to a lender if you need one. If you have already received a PPP loan, you cannot receive a second PPP loan.
Some PPP loans Extended to Five Year Payback Period Instead of Two
If your PPP loan received an SBA loan number on or after June 5, 2020, the loan has a five-year maturity. If your PPP loan received an SBA loan number before June 5, 2020, the loan has a two-year maturity, unless the borrower and lender mutually agree to extend the term of the loan to five years. Your promissory note for your PPP loan will state the term of the loan.
The SBA is Not Yet Accepting Loan Forgiveness Applications
Some borrowers have already spent their PPP loan funds and are interested in applying for forgiveness. Contact your lender. Some Lenders are accepting Loan Forgiveness Applications. But lenders cannot yet submit them to the SBA. Getting your forgiveness application in early may get your loan forgiven more quickly later. However, you should wait to submit that loan forgiveness application until the process is a bit more developed. Until the SBA is ready to accept the forgiveness applications, the applications themselves, and the rules, are subject to change. You may just end up having to redo your loan forgiveness application or you may miss out on some important changes.
If you have any questions on any of the PPP developments, call us at (561) 361-8700.