SBA is NOW accepting PPP Loan Forgiveness Applications

Recently the United States Small Business Administration (SBA) announced that first and second draw Paycheck Protection Program (PPP) Loan recipients can apply for PPP Loan Forgiveness. Borrowers can apply for loan forgiveness once all of the loan funds, for which the borrower is applying to be forgiven, have been used and may apply for forgiveness any time up to the maturity date of the loan. Borrowers must apply within 10 months after the last day of the covered period. If the application is not submitted within this time frame, PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.

Here is a quick overview of what you need to know for first and second draw PPP Loan recipients per the SBA.gov website.

First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

• Employee and compensation levels are maintained
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60% of the proceeds are spent on payroll costs

Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if during the 8- to 24-week covered period following loan disbursement:

• Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
• The loan proceeds are spent on payroll costs and other eligible expenses; and
• At least 60% of the proceeds are spent on payroll costs

For all of the required forms and details on how to submit your application, please visit sba.gov’s page here.