PPP Loan Forgiveness Deadline

A quick reminder that the Paycheck Protection Program (PPP) loan forgiveness deadlines are fast approaching. To avoid making unnecessary PPP loan payments, borrowers must submit loan forgiveness applications to the lender for review within 10 months from the end of the covered period. For borrowers that received the PPP loan in early-to-mid April 2020, the due dates will begin in mid-to-late July 2021. If loan forgiveness applications are received by the application due date, loan payments are deferred until a final loan forgiveness decision is made by the lender and Small Business Administration (SBA).

Failure to submit the loan forgiveness application by the application due date will result in the PPP loan automatically converting into a standard loan at 1% interest, and the principal loan balance and accrued interest payments will start to become due.

Borrowers will then still have the ability to submit loan forgiveness applications through the maturity date of the loan. PPP loans made prior to June 5, 2020 have a loan term of two years, as opposed to five years for loans approved after June 5, 2020. Borrowers can extend the maturity date of loans made prior to June 5, 2020 to five years by working with their lender.