If you received a PPP loan, and spent the funds properly, your loan is fully forgivable. Once you have used up the PPP loan funds, you should start the PPP forgiveness process.
In order for the PPP loan to be fully forgiven, the forgiveness application must be submitted within 10 months after the last day of the “Covered Period”.
Lenders will continue accepting PPP forgiveness applications so long as borrowers have PPP loans. It’s highly recommended, however, that you apply for forgiveness before the first PPP loan payment is due.
PPP loans have a Covered Period of 8 or 24 weeks after the disbursement of the PPP funds. Once that Covered Period ends, your loan payments are deferred for 10 months. Simply put, you don’t have to worry about making the first payment for approximately a year (8 or 24 weeks plus 10 months) after the disbursement date.
If borrowers do not apply for forgiveness within 10 months after the last day of the Covered Period, then PPP loan payments and interest are no longer deferred, and borrowers will begin making loan payments to their PPP lender with loan terms of 1% interest on a two to five year term.
If you have received a PPP loan and have not yet started the PPP loan application process, please reach out to your LMC contact and they will put you in touch with our LMC PPP forgiveness team.