Quick Answer: Should I Wait To Apply For PPP Loan Forgiveness?

What is the deadline for applying for PPP loan forgiveness?

The new FAQ clarifies when loan forgiveness applications are due.

Question: The PPP loan forgiveness application forms (3508, 3508EZ, and 3508S) display an expiration date of 10/31/2020 in the upper-right corner.

Is October 31, 2020, the deadline for borrowers to apply for forgiveness.

Answer: No..

What do I need to do to have my PPP loan forgiven?

Use the following tips on how to make sure your PPP loan is forgiven to get started:Use it for eligible expenses.Keep your employee headcount up.Don’t reduce an employee’s wages by more than 25%Document everything.Talk with your lender.Apply for loan forgiveness.

How do you maximize PPP loan forgiveness?

7 ways small businesses can maximize PPP loan forgivenessDon’t short yourself on allowable payroll costs. … But don’t go beyond PPP payroll boundaries. … Maintain your staffing. … Avoid drastic pay cuts. … Focus most of your PPP loan on payroll. … Stay within allowable expenses for the rest of your PPP loan amount. … If necessary, forge ahead without loan forgiveness.

Do PPP loans have to be repaid?

A key component of PPP loans is government forgiveness—if businesses use these loans to cover payroll and other crucial costs over an eight-week period, the loans can be forgiven, effectively turning them into grants.

Will my PPP loan be forgiven?

Forgiveness for self-employed individuals You are eligible to claim 2.5 months’ worth of your 2019 net profit to replace pay. If you didn’t have any other payroll expenses factoring into your PPP loan amount, this means that your entire PPP loan could be forgiven for the 24-week period.

What if your PPP loan is not forgiven?

You will have to repay any amount of the PPP loan that is not forgiven at a 1% interest over a 5 year term. Loan payments will be deferred for six months but will start incurring interest immediately. … Once you submit your application for forgiveness, the lender will have 60 days to accept or deny your application.

How long does it take SBA to approve PPP?

approximately 10 daysHow long does it take for me to get the money? The EIDL Loan process takes a minimum of 21 days to complete. However, the completed timeframe is on a case by case basis. The PPP process takes approximately 10 days to complete.

Is the PPP loan a good idea?

Even if you can’t open your business, a PPP loan enables you to continue paying your employees—and for free (under the loan forgiveness provision). … That part of the loan is also forgivable, which means that a PPP loan is still a good idea because it: Keeps your employees paid (and retained for when you reopen).

What does the PPP loan cover?

The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and. Employee and compensation levels are maintained.