The U.S. Small Business Administration released Paycheck Protection Program (PPP) factsheet for borrowers that provides a high-level overview of what they have to do as part of the PPP Forgiveness process.
- PPP borrowers may be eligible for loan forgiveness if the funds were used for eligible payroll costs, payments on business mortgage interest payments, rent, or utilities during either the 8- or 24-week period after disbursement.
- A borrower can apply for forgiveness once it has used all loan proceeds for which the borrower is requesting forgiveness.
- Borrowers can apply for forgiveness any time up to the maturity date of the loan.
- If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred and borrowers will begin making loan payments to their PPP lender.